Avery Dennison Corporation (AVY) shares plummeted 6.01% in pre-market trading on Thursday after the adhesive materials and packaging company reported mixed fourth-quarter results and issued a disappointing earnings outlook for 2025, citing currency headwinds.
For the fourth quarter of 2024, Avery Dennison posted adjusted earnings per share of $2.38, slightly missing analysts' consensus estimate of $2.41. While earnings grew 10.2% year-over-year, the company's full-year 2025 EPS guidance range of $9.80 to $10.20 fell short of Wall Street's forecast of $10.43 at the midpoint.
Adding pressure to the stock was Avery Dennison's warning of a $30 million headwind to operating income in 2025 due to the strong U.S. dollar's impact on currency translation for its international sales. The company, which operates in over 50 countries, derived 69% of its total revenue from international markets in 2023.
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