Avery Dennison shares lost 6% in a day
2022.12.08 14:14
Avery Dennison shares lost 6% in a day
Budrigannews.com – (NYSE) Avery Dennison After the company said in a fireside chat hosted by Bank of America that it is having a “challenging” end to the year, shares fell on Thursday.
At the time of writing, Avery Dennison shares are down about 5.8%, adding to the decline in its share price this year.
Although AVY’s CEO stated that the company anticipates double-digit organic growth and double-digit EPS growth ex-currency at the end of the year, revenue has decreased by approximately $100 million in the current quarter compared to its previous forecasts.
Consequently, AVY is “activating its recession scenario plan” to mitigate lower volumes and reduce costs in the near future.
Avery warned two weeks later that it would likely end up at the lower end of that reduced FY range due to continued volume weakness after reducing its 2022 adjusted EPS guidance in conjunction with its;
“AVY’s label converting customers are rapidly reducing their inventories after having over-ordered during the pandemic when these companies were experiencing considerable difficulty getting enough material from their suppliers,” KeyBanc Capital analysts told investors in response to the news.
“We’ve seen the same pattern emerge in other markets that we cover for packaging, with beverage cans serving as an additional obvious example: Customers over-ordered as a result of artificially high demand (as a result of historically high at-home consumption and unprecedented government stimulus and handouts), and now they are experiencing normal demand patterns and are attempting to simultaneously work off excess inventories,” the analysts added.
