Avery Dennison Corp (NYSE:AVY) reported a first-quarter FY23 sales decline Wednesday of 12.1% year-on-year to $2.06 billion, missing the analyst consensus estimate of $2.18 billion.
Reported sales for the Materials group decreased by 13% to $1.5 billion and Solutions Group declined 11% to $605 million.
Gross profit fell 15.4% Y/Y to $542.3 million.
Marketing, general and administrative expenses declined 5.8% Y/Y to $334.4 million.
It reported an operating margin of 9.2%, with operating income declining 34% to $190.1 million.
The company held $351.3 million in cash and equivalents as of April 1, 2023. Net cash provided by operating activities for the quarter was $1.9 million.
Adjusted EPS of $1.70 beat the consensus estimate of $1.66.
Outlook: Avery Dennison cut its FY23 adjusted EPS outlook to $8.85 – $9.20 (previously $9.15 – $9.55) versus the consensus of $9.28.
Price Action: AVY shares closed lower by 4.63% at $170.83 on Tuesday.
