Avery Dennison posts higher 1Q profit, raises 2010 revenue outlook above Street; shares climb

Avery Dennison 1Q profit rises, beats estimates

PASADENA, Calif. — Avery Dennison Corp., which makes adhesive labels and other office products, said Tuesday that it moved to a profit in the first quarter, handily beating analyst estimates and sending shares to a new 52-week high.

The company also raised its 2010 revenue outlook above analyst projections.

The company earned $54.7 million, or 51 cents per share, in the three-month period ending April 3. In the year-ago period the company lost $898.9 million, or $8.99 per share, including an $832 million writedown on the value of some businesses.

Revenue rose 7 percent to $1.55 billion from $1.43 billion.

Analysts expected the company to earn 43 cents per share on revenue of $1.46 billion, according to a Thomson Reuters survey.

Shares rose $3, or 7.6 percent, to $42.30 in heavy afternoon trading. Earlier in the session, shares set a new 52-week high of $43.33.

The company said it now believes it will earn between $2.50 and $2.80 per share for the fiscal year. The projection presumes revenue growth of between 5 percent and 7 percent, which implies revenue of $6.25 billion to $6.37 billion for the year.

In January, the company projected 2010 revenue growth of up to 5 percent.

On average, analysts predict the company will earn $2.53 per share on revenue of $6.17 billion.