Q: Can you comment on the quarterly earnings and guidance
5i Research Answer:
EPS of $0.94 beat estimates of $0.8338 and revenues of $1.65B beat estimates of $1.62B. Sales increased by 8.6%, largely driven by acquisitions (3.0%) and positive currency translation (4.2%), and partially due to organic growth (1.4%). Its operating margin expanded by 0.6% to 15.6%, and it expanded its balance sheet and grew its free cash flows. Management expects some recovery in Q2 as China has a full quarter, however, its Avery segment will see tough comparables for Q2 and Innovia will be negatively impacted by weak label materials industry demand. Overall, this was a strong quarter for the company and the market has so far responded well.