Research Desk Line-up: On Track Innovations Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Avery Dennison Corp. (NYSE: AVY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AVY, following the Company's release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The producer of labeling and packaging materials and solutions Company's net revenue and adjusted EPS surpassed analysts' expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Business Equipment industry. Pro-TD has currently selected On Track Innovations Ltd (NASDAQ: OTIV) for due-diligence and potential coverage as the Company reported on November 08, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on On Track Innovations when we publish it.
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For three months ended September 30, 2017, Avery Dennison's net revenues increased 11.3% on a reported basis, or 5.3% on an organic basis, to $1.68 billion from $1.51 billion in Q3 FY16. Net revenue surpassed analysts' expectations of $1.65 billion.
During Q3 FY17, the Company's gross profit increased 8.1% to $451.6 million from $417.6 million in the same period last year. For the reported quarter, the Company's gross margin decreased 80 basis points to 26.9% of revenue from 27.7% of revenue in Q3 FY16.
During Q3 FY17, the Company's operating income increased 14.6% to $163.6 million from $142.7 million in the same period last year. For the reported quarter, the Company's operating margin increased 20 basis points to 9.7% of revenue from 9.5% of revenue in the third quarter of last year. For the reported quarter, Avery Dennison's adjusted operating margin increased 60 basis points to 10.4% of revenue from 9.8% of revenue in Q3 FY16.
For the reported quarter, Avery Dennison's net income increased 21.5% to $108.3 million on a y-o-y basis from $89.1 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 22.4% to $1.20 on a y-o-y basis from $0.98 in the same period last year. For the reported quarter, Avery Dennison's adjusted net income increased 23.9% to $113.5 million on a y-o-y basis from $91.6 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS increased 24.8% to $1.26 on a y-o-y basis from $1.01 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $1.21.
Avery Dennison's Segment Details
Label and Graphic Materials - During Q3 FY17, the Label and Graphic Materials segment's net revenue increased 8.7% on a reported basis, or 5.1% on an organic basis to $1.14 billion, from $1.05 billion in the same period last year. For the reported quarter, the segment's operating margin increased 30 basis points to 12.8% of revenue, from 12.5% of revenue in Q3 FY16. For the reported quarter, the segment's adjusted operating margin increased 40 basis points to 13.1% of revenue from 12.7% of revenue in the third quarter of 2016.
Retail Branding and Information Solutions - During Q3 FY17, the Retail Branding and Information Solutions segment's net revenue increased 6.3% on a reported basis, or 6.5% on an organic basis, to $373.8 million from $351.5 million in the same period last year. The increase was due to strength in both RFID and the base business. For the reported quarter, the segment's operating margin increased 20 basis points to 6.8% of revenue from 6.6% of revenue in Q3 FY16. For the reported quarter, the segment's adjusted operating margin increased 170 basis points to 8.7% of revenue from 7.0% of revenue in the third quarter of 2016.
Industrial and Healthcare Materials - During Q3 FY17, the Industrial and Healthcare Materials segment's net revenue increased 51.8% on reported basis, or 3.5% on an organic basis, to $168.4 million from $110.9 million in the same period last year. For the reported quarter, the segment's operating margin decreased 290 basis points to 8.2% of revenue from 11.1% of revenue in Q3 FY16. For the reported quarter, the segment's adjusted operating margin decreased 320 basis points to 8.3% of revenue from 11.5% of revenue in the third quarter of 2016.
As on September 30, 2017, Avery Dennison's cash and cash equivalents increased 22.7% to $232.3 million from $189.4 million on October 01, 2016. For the reported quarter, the Company's long-term debt and capital leases increased 82.1% to $1.30 billion from $713.0 million in Q3 FY16.
During Q3 FY17, the Company's net trade accounts receivable increased 10.8% to $1.18 billion from $1.07 billion in the same period last year. For the reported quarter, the Company's accounts payable increased 9.5% to $949.2 million from $866.7 million in Q3 FY16.
During FY17, the Company's YTD cash provided by operating activities increased 7.4% to $392.6 million from $365.7 million in the same period last year. During FY17, the Company's YTD free cash flow increased 3.4% to $256.0 million from $247.7 million in the same period last year.
During Q3 FY17, the Company repurchased 0.4 million shares for $35 million.
For FY17, Avery Dennison expects diluted EPS to be in the range of $4.60 to $4.65 and estimates adjusted diluted EPS to be in the range of $4.90 to $4.95.
At the closing bell, on Wednesday, November 15, 2017, Avery Dennison's stock marginally down 0.43%, ending the trading session at $107.70. A total volume of 500.09 thousand shares have exchanged hands. The Company's stock price skyrocketed 15.61% in the last three months, 30.55% in the past six months, and 51.33% in the previous twelve months. Moreover, the stock soared 53.38% since the start of the year. The stock is trading at a PE ratio of 24.02 and has a dividend yield of 1.67%. The stock currently has a market cap of $9.53 billion.
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