Avery Dennison (NYSE: AVY) reported Q1 EPS of $2.40, $0.37 better than the analyst estimate of $2.03. Revenue for the quarter came in at $2.05 billion versus the consensus estimate of $1.93 billion.

Highlights:

• 1Q21 Reported EPS of $2.50, up 56%
  • Adjusted EPS (non-GAAP) of $2.40, up 45%
• 1Q21 Net sales increased 19.1% to $2.05 billion
  • Sales growth ex. currency (non-GAAP) of 10.9%
  • Organic sales growth (non-GAAP) of 8.8%

“We are off to a strong start to the year, with earnings growth well above expectations, driven by higher volume and productivity gains across the portfolio,” said Mitch Butier, Avery Dennison president and CEO.

“All three of our operating segments delivered strong sales growth and significant margin expansion. Our strong performance comes at a time when the global health crisis is resurging in many parts of the world and supply chains are tightening. The current environment further reinforces our determination to remain vigilant in ensuring the health and well-being of our employees, delivering for our customers, supporting our communities, and creating value for our shareholders.

“We have raised our full-year outlook for adjusted earnings per share, reflecting the strong performance in the first quarter, and a higher organic growth assumption for the balance of the year,” said Butier. “We continue to remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation for all our stakeholders."

“Once again, I want to thank our entire team for their tireless efforts to keep one another safe while delivering for our customers during this challenging period, bringing a whole new level of agility and dedication to address the unique challenges at hand.”

GUIDANCE:

Avery Dennison sees FY2021 EPS of $8.40-$8.80, versus the consensus of $8.00.

In its supplemental presentation materials, “First Quarter 2021 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2021 financial results. Based on the factors listed and other assumptions, the company has raised its guidance range for 2021 reported earnings per share from a range of $7.50 to $7.90 to a range of $8.25 to $8.65. Excluding an estimated $0.15 per share related to restructuring charges and other items, the company’s guidance for adjusted earnings per share has been raised from a range of $7.65 to $8.05 to a range of $8.40 to $8.80.

For earnings history and earnings-related data on Avery Dennison (AVY) click here.