Earnings Preview For Avery Dennison
Avery Dennison (NYSE:AVY) is preparing to release its quarterly earnings on Tuesday, 2025-07-22. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Avery Dennison to report an earnings per share (EPS) of $2.41.
The announcement from Avery Dennison is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Performance in Previous Earnings
During the last quarter, the company reported an EPS missed by $0.01, leading to a 1.98% increase in the share price on the subsequent day.
Here's a look at Avery Dennison's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.31 | 2.41 | 2.32 | 2.26 |
| EPS Actual | 2.30 | 2.38 | 2.33 | 2.42 |
| Price Change % | 2.0% | 2.0% | -1.0% | -3.0% |
Tracking Avery Dennison's Stock Performance
Shares of Avery Dennison were trading at $178.6 as of July 18. Over the last 52-week period, shares are down 18.53%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analysts' Take on Avery Dennison
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Avery Dennison.
Analysts have provided Avery Dennison with 11 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $198.55, suggesting a potential 11.17% upside.
Comparing Ratings with Competitors
In this comparison, we explore the analyst ratings and average 1-year price targets of Packaging Corp of America, Graphic Packaging Holding and Sealed Air, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Packaging Corp of America, with an average 1-year price target of $212.67, suggesting a potential 19.08% upside.
- Analysts currently favor an Neutral trajectory for Graphic Packaging Holding, with an average 1-year price target of $25.89, suggesting a potential 85.5% downside.
- Analysts currently favor an Buy trajectory for Sealed Air, with an average 1-year price target of $38.12, suggesting a potential 78.66% downside.
Key Findings: Peer Analysis Summary
In the peer analysis summary, key metrics for Packaging Corp of America, Graphic Packaging Holding and Sealed Air are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Avery Dennison | Outperform | -0.14% | $621.50M | 7.42% |
| Packaging Corp of America | Neutral | 8.16% | $454.70M | 4.55% |
| Graphic Packaging Holding | Neutral | -6.15% | $445M | 4.12% |
| Sealed Air | Buy | -4.29% | $391.70M | 15.96% |
Key Takeaway:
Avery Dennison ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
Delving into Avery Dennison's Background
Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.
Understanding the Numbers: Avery Dennison's Finances
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Negative Revenue Trend: Examining Avery Dennison's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -0.14% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.74%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Avery Dennison's ROE stands out, surpassing industry averages. With an impressive ROE of 7.42%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Avery Dennison's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.98% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.59.
To track all earnings releases for Avery Dennison visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
