Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Mentor, Avery Dennison (AVY - Free Report) is in the Industrial Products sector, and so far this year, shares have seen a price change of -3.75%. Currently paying a dividend of $1.00 per share, the company has a dividend yield of 2.28%. In comparison, the Containers - Paper and Packaging industry's yield is 2.5%, while the S&P 500's yield is 1.35%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 8.1% from last year. Over the last 5 years, Avery Dennison has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.44%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Avery Dennison's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
AVY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.16 per share, which represents a year-over-year growth rate of 6.61%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AVY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Canada Pension Plan Investment Board purchased a new stake in Avery Dennison Corporation (NYSE:AVY – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 38,700 shares of the industrial products company’s stock, valued at approximately $6,283,000. Canada Pension Plan Investment Board owned approximately 0.05% of Avery Dennison as of its most recent SEC filing.
A number of other large investors also recently bought and sold shares of AVY. Coldstream Capital Management Inc. boosted its position in Avery Dennison by 2.6% during the fourth quarter. Coldstream Capital Management Inc. now owns 2,163 shares of the industrial products company’s stock worth $393,000 after purchasing an additional 54 shares in the last quarter. Huntington National Bank increased its position in shares of Avery Dennison by 3.2% in the fourth quarter. Huntington National Bank now owns 1,832 shares of the industrial products company’s stock valued at $333,000 after buying an additional 56 shares in the last quarter. Resources Management Corp CT ADV raised its stake in shares of Avery Dennison by 0.8% during the 2nd quarter. Resources Management Corp CT ADV now owns 7,800 shares of the industrial products company’s stock worth $1,369,000 after buying an additional 62 shares during the period. Rothschild Investment LLC lifted its position in shares of Avery Dennison by 22.9% during the 4th quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company’s stock valued at $70,000 after buying an additional 72 shares in the last quarter. Finally, Root Financial Partners LLC lifted its position in shares of Avery Dennison by 60.8% during the 4th quarter. Root Financial Partners LLC now owns 193 shares of the industrial products company’s stock valued at $35,000 after buying an additional 73 shares in the last quarter. Institutional investors and hedge funds own 94.17% of the company’s stock.
Analyst Upgrades and Downgrades Several equities research analysts recently commented on the stock. Wall Street Zen raised shares of Avery Dennison from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Bank of America reiterated a “buy” rating on shares of Avery Dennison in a research report on Friday, August 14th. Truist Financial reduced their price target on shares of Avery Dennison from $221.00 to $209.00 and set a “buy” rating for the company in a research report on Wednesday, July 15th. Weiss Ratings raised shares of Avery Dennison from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, Citigroup lifted their price objective on Avery Dennison from $184.00 to $186.00 and gave the stock a “neutral” rating in a report on Friday, July 31st. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $201.22.
Get Our Latest Research Report on Avery Dennison Avery Dennison Trading Down 0.0% Shares of AVY stock opened at $177.71 on Monday. Avery Dennison Corporation has a fifty-two week low of $152.42 and a fifty-two week high of $199.54. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.79 and a current ratio of 1.13. The stock’s fifty day moving average is $168.88 and its two-hundred day moving average is $169.84. The firm has a market capitalization of $13.47 billion, a P/E ratio of 19.46, a PEG ratio of 2.27 and a beta of 0.81.
Avery Dennison (NYSE:AVY – Get Free Report) last released its earnings results on Thursday, July 30th. The industrial products company reported $2.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.47 by $0.42. The business had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.30 billion. Avery Dennison had a net margin of 7.62% and a return on equity of 34.60%. The company’s revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.42 earnings per share. Avery Dennison has set its Q3 2026 guidance at 10.000-10.300 EPS. Research analysts expect that Avery Dennison Corporation will post 10.15 earnings per share for the current fiscal year.
Avery Dennison Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd will be issued a $1.00 dividend. The ex-dividend date is Wednesday, September 2nd. This represents a $4.00 dividend on an annualized basis and a yield of 2.3%. Avery Dennison’s dividend payout ratio is presently 43.81%.
Insider Buying and Selling In other Avery Dennison news, SVP Ignacio J. Walker sold 1,742 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $171.61, for a total value of $298,944.62. Following the transaction, the senior vice president directly owned 7,585 shares of the company’s stock, valued at $1,301,661.85. This trade represents a 18.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.81% of the company’s stock.
Avery Dennison Profile (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
Featured Stories Five stocks we like better than Avery Dennison Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against? Want to see what other hedge funds are holding AVY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Avery Dennison Corporation (NYSE:AVY – Free Report).
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Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Avery Dennison (AVY - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this maker of office products a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Avery Dennison is 2.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.6% this year, crushing the industry average, which calls for EPS growth of 1.5%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Avery Dennison has an S/TA ratio of 1.03, which means that the company gets $1.03 in sales for each dollar in assets. Comparing this to the industry average of 0.74, it can be said that the company is more efficient.
In addition to efficiency in generating sales, sales growth plays an important role. And Avery Dennison looks attractive from a sales growth perspective as well. The company's sales are expected to grow 5.9% this year versus the industry average of 2.2%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Avery Dennison have been revising upward. The Zacks Consensus Estimate for the current year has surged 1.6% over the past month.
Bottom LineAvery Dennison has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Avery Dennison well for outperformance, so growth investors may want to bet on it.
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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Stock to Watch: Avery Dennison (AVY - Free Report) Headquartered in Pasadena, CA, Avery Dennison Corporation produces pressure-sensitive materials, and a variety of tickets, tags, labels and other converted products. Its clientele is spread across the United States, Europe, Asia, Latin America and other regions.
AVY is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AVY has a Growth Style Score of A, forecasting year-over-year earnings growth of 6.6% for the current fiscal year.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.16 to $10.16 per share. AVY boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AVY should be on investors' short list.
Bank of Nova Scotia bought a new position in Avery Dennison Corporation (NYSE:AVY – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 25,452 shares of the industrial products company’s stock, valued at approximately $4,132,000.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in AVY. BlackRock Inc. bought a new stake in Avery Dennison during the second quarter worth approximately $1,052,464,000. Norges Bank bought a new stake in shares of Avery Dennison in the 4th quarter valued at approximately $188,438,000. Morgan Stanley boosted its holdings in shares of Avery Dennison by 20.1% in the 4th quarter. Morgan Stanley now owns 3,869,889 shares of the industrial products company’s stock worth $703,856,000 after purchasing an additional 647,795 shares during the period. Wellington Management Group LLP increased its position in shares of Avery Dennison by 12.5% during the 3rd quarter. Wellington Management Group LLP now owns 5,808,960 shares of the industrial products company’s stock valued at $942,039,000 after purchasing an additional 644,664 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Avery Dennison during the 2nd quarter valued at approximately $101,896,000. 94.17% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades AVY has been the topic of several recent analyst reports. JPMorgan Chase & Co. increased their target price on shares of Avery Dennison from $185.00 to $190.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Truist Financial dropped their price target on shares of Avery Dennison from $221.00 to $209.00 and set a “buy” rating for the company in a research note on Wednesday, July 15th. Bank of America reiterated a “buy” rating on shares of Avery Dennison in a report on Friday, August 14th. Argus set a $175.00 price objective on shares of Avery Dennison in a research report on Thursday, June 4th. Finally, Wall Street Zen raised shares of Avery Dennison from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $201.22.
Get Our Latest Research Report on Avery Dennison Avery Dennison Stock Down 1.9% Shares of Avery Dennison stock opened at $180.12 on Wednesday. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.13 and a quick ratio of 0.79. The stock has a market cap of $13.65 billion, a price-to-earnings ratio of 19.73, a PEG ratio of 2.34 and a beta of 0.81. The firm’s 50-day moving average is $167.64 and its two-hundred day moving average is $170.09. Avery Dennison Corporation has a 1 year low of $152.42 and a 1 year high of $199.54.
Avery Dennison (NYSE:AVY – Get Free Report) last announced its earnings results on Thursday, July 30th. The industrial products company reported $2.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.42. Avery Dennison had a return on equity of 34.60% and a net margin of 7.62%.The business had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.30 billion. During the same quarter last year, the firm earned $2.42 EPS. The business’s revenue for the quarter was up 10.9% on a year-over-year basis. Avery Dennison has set its Q3 2026 guidance at 10.000-10.300 EPS. As a group, research analysts expect that Avery Dennison Corporation will post 10.15 earnings per share for the current fiscal year.
Avery Dennison Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd will be paid a $1.00 dividend. The ex-dividend date is Wednesday, September 2nd. This represents a $4.00 dividend on an annualized basis and a yield of 2.2%. Avery Dennison’s dividend payout ratio (DPR) is 43.81%.
Insider Buying and Selling In other Avery Dennison news, SVP Ignacio J. Walker sold 1,742 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $171.61, for a total transaction of $298,944.62. Following the completion of the transaction, the senior vice president directly owned 7,585 shares of the company’s stock, valued at approximately $1,301,661.85. This trade represents a 18.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.81% of the company’s stock.
About Avery Dennison (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
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Barbara Oil Co. bought a new position in Avery Dennison Corporation (NYSE:AVY – Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund bought 15,500 shares of the industrial products company’s stock, valued at approximately $2,516,000.
Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. Trust Co. of Vermont purchased a new stake in Avery Dennison in the 2nd quarter worth about $27,000. Root Financial Partners LLC raised its position in Avery Dennison by 60.8% during the 4th quarter. Root Financial Partners LLC now owns 193 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 73 shares in the last quarter. Elevation Wealth Partners LLC raised its holdings in shares of Avery Dennison by 684.0% in the second quarter. Elevation Wealth Partners LLC now owns 196 shares of the industrial products company’s stock valued at $32,000 after acquiring an additional 171 shares in the last quarter. Godfrey Financial Associates Inc. bought a new stake in shares of Avery Dennison in the 4th quarter valued at about $37,000. Finally, CYBER HORNET ETFs LLC bought a new stake in shares of Avery Dennison in the 2nd quarter valued at about $37,000. Hedge funds and other institutional investors own 94.17% of the company’s stock.
Insiders Place Their Bets In related news, SVP Ignacio J. Walker sold 1,742 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $171.61, for a total transaction of $298,944.62. Following the transaction, the senior vice president directly owned 7,585 shares in the company, valued at $1,301,661.85. The trade was a 18.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.81% of the stock is currently owned by company insiders.
Avery Dennison Stock Up 0.0% Shares of Avery Dennison stock opened at $183.79 on Monday. The company has a quick ratio of 0.79, a current ratio of 1.13 and a debt-to-equity ratio of 1.37. The company has a market cap of $13.93 billion, a P/E ratio of 20.13, a PEG ratio of 3.01 and a beta of 0.81. The firm’s 50 day moving average price is $166.80 and its 200-day moving average price is $170.20. Avery Dennison Corporation has a 52-week low of $152.42 and a 52-week high of $199.54. Avery Dennison (NYSE:AVY – Get Free Report) last announced its earnings results on Thursday, July 30th. The industrial products company reported $2.89 earnings per share for the quarter, beating the consensus estimate of $2.47 by $0.42. Avery Dennison had a net margin of 7.62% and a return on equity of 34.60%. The company had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.30 billion. During the same period last year, the firm earned $2.42 earnings per share. Avery Dennison’s revenue was up 10.9% compared to the same quarter last year. Avery Dennison has set its Q3 2026 guidance at 10.000-10.300 EPS. On average, sell-side analysts predict that Avery Dennison Corporation will post 10.15 EPS for the current fiscal year.
Avery Dennison Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd will be given a $1.00 dividend. The ex-dividend date of this dividend is Wednesday, September 2nd. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.2%. Avery Dennison’s dividend payout ratio (DPR) is presently 43.81%.
Wall Street Analysts Forecast Growth AVY has been the topic of a number of recent research reports. Wall Street Zen upgraded shares of Avery Dennison from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. boosted their price objective on shares of Avery Dennison from $185.00 to $190.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Argus set a $175.00 target price on Avery Dennison in a research report on Thursday, June 4th. Bank of America reiterated a “buy” rating on shares of Avery Dennison in a report on Friday, August 14th. Finally, Citigroup boosted their price target on Avery Dennison from $184.00 to $186.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $201.22.
Get Our Latest Report on AVY
About Avery Dennison (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
Further Reading Five stocks we like better than Avery Dennison VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding AVY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Avery Dennison Corporation (NYSE:AVY – Free Report).
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EP Wealth Advisors LLC bought a new position in shares of Avery Dennison Corporation (NYSE:AVY – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 10,839 shares of the industrial products company’s stock, valued at approximately $1,760,000.
Several other hedge funds have also made changes to their positions in the company. Trust Co. of Vermont acquired a new stake in shares of Avery Dennison during the 2nd quarter worth approximately $27,000. Elevation Wealth Partners LLC raised its position in shares of Avery Dennison by 684.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 196 shares of the industrial products company’s stock valued at $32,000 after buying an additional 171 shares during the period. Root Financial Partners LLC lifted its holdings in Avery Dennison by 60.8% in the fourth quarter. Root Financial Partners LLC now owns 193 shares of the industrial products company’s stock valued at $35,000 after acquiring an additional 73 shares during the last quarter. Measured Wealth Private Client Group LLC acquired a new position in Avery Dennison in the third quarter valued at approximately $36,000. Finally, Godfrey Financial Associates Inc. purchased a new position in Avery Dennison in the fourth quarter worth approximately $37,000. Hedge funds and other institutional investors own 94.17% of the company’s stock.
Analyst Ratings Changes Several equities research analysts have issued reports on the company. Weiss Ratings raised Avery Dennison from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Argus set a $175.00 price target on Avery Dennison in a research note on Thursday, June 4th. UBS Group increased their price target on Avery Dennison from $218.00 to $225.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Truist Financial cut their price objective on Avery Dennison from $221.00 to $209.00 and set a “buy” rating for the company in a research report on Wednesday, July 15th. Finally, Wall Street Zen upgraded shares of Avery Dennison from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $201.22.
Read Our Latest Stock Report on Avery Dennison Insider Transactions at Avery Dennison In related news, SVP Ignacio J. Walker sold 1,742 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $171.61, for a total transaction of $298,944.62. Following the completion of the transaction, the senior vice president directly owned 7,585 shares in the company, valued at $1,301,661.85. This trade represents a 18.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.81% of the company’s stock.
Avery Dennison Stock Up 0.6% Avery Dennison stock opened at $183.79 on Friday. The company has a market capitalization of $13.93 billion, a PE ratio of 20.13, a price-to-earnings-growth ratio of 3.01 and a beta of 0.81. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.79 and a current ratio of 1.13. Avery Dennison Corporation has a fifty-two week low of $152.42 and a fifty-two week high of $199.54. The firm has a 50 day moving average price of $166.80 and a 200 day moving average price of $170.32.
Avery Dennison (NYSE:AVY – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The industrial products company reported $2.89 EPS for the quarter, topping analysts’ consensus estimates of $2.47 by $0.42. Avery Dennison had a return on equity of 34.60% and a net margin of 7.62%.The company had revenue of $2.46 billion for the quarter, compared to analysts’ expectations of $2.30 billion. During the same period in the prior year, the firm earned $2.42 earnings per share. The firm’s revenue was up 10.9% compared to the same quarter last year. Avery Dennison has set its Q3 2026 guidance at 10.000-10.300 EPS. Research analysts expect that Avery Dennison Corporation will post 10.15 earnings per share for the current year.
Avery Dennison Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd will be paid a dividend of $1.00 per share. The ex-dividend date of this dividend is Wednesday, September 2nd. This represents a $4.00 annualized dividend and a yield of 2.2%. Avery Dennison’s dividend payout ratio is presently 43.81%.
Avery Dennison Profile (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Avery Dennison (AVY - Free Report) is headquartered in Mentor, and is in the Industrial Products sector. The stock has seen a price change of 0.7% since the start of the year. The maker of office products is currently shelling out a dividend of $1.00 per share, with a dividend yield of 2.18%. This compares to the Containers - Paper and Packaging industry's yield of 2.35% and the S&P 500's yield of 1.32%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 8.1% from last year. Over the last 5 years, Avery Dennison has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.44%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Avery Dennison's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
AVY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $10.16 per share, which represents a year-over-year growth rate of 6.61%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AVY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Investors in Avery Dennison Corporation (AVY - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 18, 2026 $140 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Avery Dennison shares, but what is the fundamental picture for the company? Currently, Avery Dennison is a Zacks Rank #2 (Buy) in the Containers - Paper and Packaging industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while four analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.51 per share to $2.31 in that period.
Given the way analysts feel about Avery Dennison right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Avery Dennison (AVY - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this maker of office products is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Avery Dennison is 2.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.6% this year, crushing the industry average, which calls for EPS growth of 6.5%.
Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Avery Dennison has an S/TA ratio of 1.03, which means that the company gets $1.03 in sales for each dollar in assets. Comparing this to the industry average of 0.74, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Avery Dennison looks attractive from a sales growth perspective as well. The company's sales are expected to grow 5.6% this year versus the industry average of 2.2%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Avery Dennison. The Zacks Consensus Estimate for the current year has surged 1.5% over the past month.
Bottom LineAvery Dennison has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Avery Dennison is a potential outperformer and a solid choice for growth investors.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Avery Dennison (AVY - Free Report) Headquartered in Pasadena, CA, Avery Dennison Corporation produces pressure-sensitive materials, and a variety of tickets, tags, labels and other converted products. Its clientele is spread across the United States, Europe, Asia, Latin America and other regions.
AVY is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AVY has a Growth Style Score of A, forecasting year-over-year earnings growth of 6.3% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $10.13 per share. AVY boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AVY should be on investors' short list.
Ignacio J. Walker sold 1,742 shares for $299,000 based on a weighted average price of $171.61 per share on August 4, 2026. The disposition reduced the insider's direct Common Stock holdings by 19%.
Avery Dennison (NYSE:AVY – Get Free Report) and Greystone Logistics (OTCMKTS:GLGI – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Risk and Volatility Avery Dennison has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Greystone Logistics has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500.
Profitability This table compares Avery Dennison and Greystone Logistics’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Avery Dennison 7.62% 34.60% 8.76% Greystone Logistics -11.80% -27.34% -11.15% Valuation and Earnings This table compares Avery Dennison and Greystone Logistics”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Avery Dennison $8.86 billion 1.52 $688.00 million $9.13 19.50 Greystone Logistics $57.87 million 0.10 $2.35 million ($0.17) -1.29 Avery Dennison has higher revenue and earnings than Greystone Logistics. Greystone Logistics is trading at a lower price-to-earnings ratio than Avery Dennison, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a breakdown of current recommendations for Avery Dennison and Greystone Logistics, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Avery Dennison 0 2 7 0 2.78 Greystone Logistics 0 0 0 0 0.00 Avery Dennison currently has a consensus price target of $201.22, indicating a potential upside of 13.04%. Given Avery Dennison’s stronger consensus rating and higher probable upside, analysts clearly believe Avery Dennison is more favorable than Greystone Logistics.
Insider and Institutional Ownership 94.2% of Avery Dennison shares are owned by institutional investors. Comparatively, 10.3% of Greystone Logistics shares are owned by institutional investors. 0.8% of Avery Dennison shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary Avery Dennison beats Greystone Logistics on 14 of the 14 factors compared between the two stocks.
About Avery Dennison (Get Free Report)
Avery Dennison Corporation operates as a materials science and digital identification solutions company in the United States, Europe, the Middle East, North Africa, Asia, Latin, America, and internationally. It provides pressure-sensitive materials comprising papers, plastic films, metal foils, and fabrics; performance tapes products, including tapes for wire harnessing, as well as cable wrapping for automotive, electrical, and general industrial applications; mechanical fasteners, which are precision-extruded and injection-molded plastic devices used in various automotive, general industrial, and retail applications; and other pressure-sensitive adhesive-based materials and converted products under the Fasson, JAC, Yongle, and Avery Dennison brands. The company also offers graphics and reflective products for the architectural, commercial sign, digital printing, and other related market segments; durable cast and reflective films to the construction, automotive, and fleet transportation market segments; reflective films for traffic and safety applications; and pressure-sensitive vinyl and specialty materials designed for digital imaging, screen printing, and sign cutting applications under the Avery Dennison and Mactac brand names. In addition, it provides branding solutions include brand embellishments, graphic tickets, tags, and labels, and sustainable packaging; and information solutions include item-level RFID, visibility and loss prevention, price ticketing and marking, productivity and media solutions, and brand protection and security solutions, as well as care, content, and country of origin compliance solutions. It serves home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive industries. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Mentor, Ohio.
About Greystone Logistics (Get Free Report)
Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Avery Dennison (AVY - Free Report) Headquartered in Pasadena, CA, Avery Dennison Corporation produces pressure-sensitive materials, and a variety of tickets, tags, labels and other converted products. Its clientele is spread across the United States, Europe, Asia, Latin America and other regions.
AVY is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.11; value investors should take notice.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.13 to $10.13 per share. AVY boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AVY should be on investors' short list.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Mentor, Avery Dennison (AVY - Free Report) is in the Industrial Products sector, and so far this year, shares have seen a price change of -5.28%. Currently paying a dividend of $1.00 per share, the company has a dividend yield of 2.32%. In comparison, the Containers - Paper and Packaging industry's yield is 2.44%, while the S&P 500's yield is 1.34%.
Looking at dividend growth, the company's current annualized dividend of $4.00 is up 8.1% from last year. Over the last 5 years, Avery Dennison has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.44%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Avery Dennison's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AVY expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $10.12 per share, representing a year-over-year earnings growth rate of 6.19%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that AVY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Avery Dennison Corporation (AVY) Q2 2026 Earnings Call July 30, 2026 11:00 AM EDT
Company Participants
William Gilchrist - Vice President of Investor Relations
Deon Stander - President, CEO & Director
Gregory Lovins - CFO, Senior VP & Principal Financial Officer
Conference Call Participants
Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division
George Staphos - BofA Securities, Research Division
John McNulty - BMO Capital Markets Equity Research
Jeffrey Zekauskas - JPMorgan Chase & Co, Research Division
Joshua Spector - UBS Investment Bank, Research Division
Matthew Roberts - Raymond James & Associates, Inc., Research Division
John Dunigan - Jefferies LLC, Research Division
Michael Roxland - Truist Securities, Inc., Research Division
Anthony Pettinari - Citigroup Inc. Exchange Research
Presentation
Operator
Ladies and gentlemen, welcome to Avery Dennison's Earnings Conference Call for the Second Quarter ended on June 30, 2026. [Operator Instructions] As a reminder, this webcast is being recorded and will be available for replay on the Avery Dennison Investor Relations website.
I would now like to turn the call over to William Gilchrist, Avery Dennison's Vice President of Investor Relations. Please go ahead, sir.
William Gilchrist
Vice President of Investor Relations
Thank you, Ellen, and welcome to Avery Dennison's Second Quarter 2026 Earnings Conference Call. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified and reconciled from GAAP on schedules A-4 to A-8 of the financial statements accompanying today's earnings release. We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made subject to the safe harbor statement included in today's earnings release.
On the call today are Deon Stander, President and Chief Executive Officer; and Gregory Lovins, Senior Vice President and Chief Financial Officer.
Key Takeaways Avery Dennison beat Q2 earnings and revenue estimates as volume, pricing and productivity lifted the results.AVY expanded gross and operating margins, supported by pricing and favorable raw-material dynamics.Avery Dennison expects second-half destocking, with the biggest inventory unwind anticipated in Q3. Avery Dennison Corporation’s (AVY - Free Report) adjusted earnings of $2.89 per share for the second quarter of 2026 grew 19.4% year over year. The figure surpassed the Zacks Consensus Estimate of $2.47.
Including one-time items, the company has reported earnings per share of $2.67 compared with the year-ago quarter’s $2.41.
Revenues increased 10.9% year over year to $2.46 billion and beat the consensus estimate of $2.29 billion. Strong volume growth, productivity gains, and favorable pricing and raw-material dynamics supported the results. Organic sales rose 7.6%.
Avery Dennison's Q2 Margins ExpandThe cost of sales in the quarter increased 9.6% year over year to $1.73 billion. Gross profit rose 14.1% to $729.4 million. The gross margin came in at 29.6%, up from the prior-year quarter’s 28.8%.
Marketing, general and administrative expenses were $352.4 million compared with $394.8 million in the year-ago quarter. Adjusted operating profit increased to $334.6 million from $286.7 million. The adjusted operating margin was 13.6% compared with 12.9% in the prior-year quarter.
Adjusted EBITDA advanced 14.6% to $421 million. The corresponding margin improved 50 basis points to 17.1%. Volume, productivity and the net benefit of pricing and raw-material costs supported profitability, though higher employee-related expenses remained a headwind.
AVY’s Segments PerformanceRevenues in the Materials Group segment increased 15.9% year over year to $1.80 billion in the reported quarter. Our estimate was $1.61 billion. On an organic basis, sales improved 9.7%, driven by high-single-digit volume and mix growth, and a low-single-digit increase in pricing.
The segment’s adjusted operating profit increased 17.1% year over year to $284 million. Our estimate was $258 million. The adjusted operating margin was 15.8% compared with 15.6% in the prior-year quarter.
Revenues in the Solutions Group declined 0.5% year over year to $667 million. Our estimate was $672 million. On an organic basis, sales improved 2.6%, with overall apparel categories registering high-single-digit growth.
The segment’s adjusted operating income increased 14.2% year over year to $76.5 million. Our estimate was $67 million. The adjusted operating margin expanded to 11.5% from 10% in the year-ago quarter.
Avery Dennison’s Cash & Debt PositionThe company returned $347 million in cash to shareholders through share repurchases and dividend payments in the first half of 2026. AVY repurchased 1.2 million shares, with payments totaling $198 million.
Avery Dennison ended the second quarter of 2026 with cash and cash equivalents of $227 million compared with $216 million at the end of the year-ago period.
The company’s long-term debt and finance leases were $3.18 billion at the end of the second quarter, up from $2.63 billion in the year-ago period. Its net-debt-to-adjusted-EBITDA ratio was 2.3X.
AVY realized approximately $34 million in pre-tax savings from restructuring actions in the first half of 2026. The company also incurred around $34 million in pre-tax restructuring charges.
AVY's 2026 Outlook Reflects Destocking RiskAvery Dennison expects reported earnings of $9.40-$9.70 per share for 2026. Adjusted earnings are projected between $10 and $10.30 per share. The outlook assumes reported sales growth of 5-6% and organic growth of 3-4%.
AVY expects much of the customer inventory stocking recorded in the first half to unwind during the second half, with most destocking anticipated in the third quarter. The company consequently expects a greater-than-historical sequential earnings decline in that period. It is also targeting adjusted free cash flow conversion of approximately 100% and more than $60 million in incremental restructuring savings.
Avery Dennison Stock’s Price PerformanceAVY shares have gained 1.5% in the past year compared with the industry’s growth of 5.2%.
Image Source: Zacks Investment Research
AVY’s Zacks RankAvery Dennison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Packaging StocksPackaging Corporation of America (PKG - Free Report) reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above Packaging Corp’s guidance of $2.33.
Packaging Corp’s revenues increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.
Crown Holdings, Inc. (CCK - Free Report) posted second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%.
Crown Holdings revenues increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America.
Sonoco Products Company (SON - Free Report) reported adjusted earnings of $1.51 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.47 by 2.72%. The figure rose 10.2% from $1.37 in the year-ago quarter. Pricing actions, favorable foreign-exchange movements and productivity gains helped offset softer volume/mix during the quarter.
Sonoco’s revenues of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. Sonoco’s top line declined from the prior-year period primarily due to the absence of sales from the ThermoSafe business, which was divested in November 2025.
Avery Dennison (AVY - Free Report) came out with quarterly earnings of $2.89 per share, beating the Zacks Consensus Estimate of $2.47 per share. This compares to earnings of $2.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +17.00%. A quarter ago, it was expected that this maker of office products would post earnings of $2.41 per share when it actually produced earnings of $2.47, delivering a surprise of +2.49%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Avery Dennison, which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.46 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.56%. This compares to year-ago revenues of $2.22 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Avery Dennison shares have lost about 8.1% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Avery Dennison?While Avery Dennison has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Avery Dennison was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.51 on $2.31 billion in revenues for the coming quarter and $10.00 on $9.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Karat Packing (KRT - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Karat Packing's revenues are expected to be $135 million, up 8.9% from the year-ago quarter.
For the quarter ended June 2026, Avery Dennison (AVY - Free Report) reported revenue of $2.46 billion, up 10.9% over the same period last year. EPS came in at $2.89, compared to $2.42 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.29 billion, representing a surprise of +7.56%. The company delivered an EPS surprise of +17%, with the consensus EPS estimate being $2.47.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Avery Dennison performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Solutions Group: $666.8 million compared to the $684.01 million average estimate based on two analysts. The reported number represents a change of -0.5% year over year.Net Sales- Materials Group: $1.8 billion compared to the $1.61 billion average estimate based on two analysts. The reported number represents a change of +15.9% year over year.Adjusted Operating income (loss)- Corporate expense: $-25.9 million versus $-26.71 million estimated by two analysts on average.Adjusted Operating income (loss)- Solutions Group: $76.5 million versus $66.36 million estimated by two analysts on average.Adjusted Operating income (loss)- Materials Group: $284 million versus $250.7 million estimated by two analysts on average.View all Key Company Metrics for Avery Dennison here>>>
Shares of Avery Dennison have returned +2.5% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
MENTOR, Ohio--(BUSINESS WIRE)--Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its second quarter ended June 30, 2026. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year. “We delivered very strong second quarter results, marked b.
Key Takeaways AVY Q2 revenues are expected to rise 3.1% to $2.29 billion, with EPS of $2.47.Avery Dennison's Materials Group may benefit from productivity and Intelligent Labels growth.AVY faces input cost pressure, destocking effects and softer auto demand in Solutions Group. Avery Dennison Corporation (AVY - Free Report) is scheduled to report second-quarter 2026 results before the opening bell on July 30, 2026.
The Zacks Consensus Estimate for AVY’s second-quarter revenues is pegged at $2.29 billion, indicating a 3.1% rise from the year-ago reported figure.
The consensus estimate for AVY’s earnings has moved up in the past 60 days. The consensus estimate is pegged at $2.47 per share, indicating a year-over-year rise of 2.1%.
Image Source: Zacks Investment Research
AVY’s Earnings Surprise HistoryAvery Dennison’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 2.1%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Avery DennisonOur proven model does not conclusively predict an earnings beat for AVY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -0.44%.
Zacks Rank: AVY currently carries a Zacks Rank #3.
Factors Likely to Have Shaped AVY’s Q2 PerformanceAvery Dennison’s Materials Group segment continues to gain from productivity improvement and modest volume. Our model predicts the Materials Group segment’s revenues to rise 4.1% year over year in the quarter to $1.61 billion. The upside will be driven by growth in high-value categories, including Intelligent Labels, and growth in graphics and reflectives.
Our estimate for the Materials Group segment’s adjusted operating profit is pinned at $258 million, indicating year-over-year growth of 6.3%.
High-value categories and productivity are expected to have aided the Solutions Group segment's growth. Our model predicts the Solutions Group segment’s revenues to be $672 million, indicating an increase of 0.3% from the prior-year quarter’s actual. However, the segment is facing softer auto end-market demand and customer order timing in some higher-value platforms.
Our estimate for the segment’s operating profit is pinned at $66 million, implying a decrease of 0.5% from the year-ago quarter’s reported figure.
Moreover, the company expects a sequential headwind in the second quarter from destocking tied to a March pre-buy. These swings can create quarterly variability and delay the conversion of longer-cycle growth initiatives.
Rising input costs are expected to have impacted the company’s margins. The impacts are anticipated to have been offset by AVY’s productivity improvement and cost-saving actions.
Avery Dennison Stock’s Price PerformanceAVY shares have lost 3.2% in the past year against the industry’s growth of 1.5%.
Image Source: Zacks Investment Research
Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Ingersoll Rand Inc. (IR - Free Report) , slated to release second-quarter 2026 results on July 30, has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ingersoll Rand’s second-quarter 2026 earnings is pegged at 83 cents per share, suggesting a year-over-year rise of 3.7%. IR has a trailing four-quarter average surprise of 2.4%.
Deere & Company (DE - Free Report) , slated to release third-quarter fiscal 2026 results on Aug. 20, has an Earnings ESP of +1.22% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Deere’s third-quarter fiscal 2026 earnings is pegged at $4.86 per share, suggesting a year-over-year rise of 2.3%. DE has a trailing four-quarter average surprise of 10.2%.
Ferguson Enterprises Inc. (FERG - Free Report) , slated to release second-quarter 2026 results on Aug. 10, has an Earnings ESP of +1.22% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Ferguson’s second-quarter 2026 earnings is pegged at $3.23 per share. Ferguson has a trailing four-quarter average surprise of 6.5%.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On July 24, 2026, Avery Dennison Corp (AVY) shares rose 3.7% to a current price of $160.90. The stock has seen a 52-week range between $152.42 and $199.54, refl
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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
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Stock to Watch: Avery Dennison (AVY - Free Report) Headquartered in Pasadena, CA, Avery Dennison Corporation produces pressure-sensitive materials, and a variety of tickets, tags, labels and other converted products. Its clientele is spread across the United States, Europe, Asia, Latin America and other regions.
AVY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AVY has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.9% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $10.00 per share. AVY also boasts an average earnings surprise of +2.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AVY should be on investors' short list.
Avery Dennison (AVY - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of office products is expected to post quarterly earnings of $2.47 per share in its upcoming report, which represents a year-over-year change of +2.1%.
Revenues are expected to be $2.29 billion, up 3.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Avery Dennison?For Avery Dennison, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.44%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Avery Dennison will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Avery Dennison would post earnings of $2.41 per share when it actually produced earnings of $2.47, delivering a surprise of +2.49%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Avery Dennison doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
MENTOR, Ohio--(BUSINESS WIRE)-- #AVY--Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced that its Board of Directors has declared a quarterly cash dividend of $1.00 per share. The dividend is payable on September 16, 2026 to shareholders of record on September 2, 2026. About Avery Dennison Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company. We are Making P.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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Stock to Watch: Avery Dennison (AVY - Free Report) Headquartered in Pasadena, CA, Avery Dennison Corporation produces pressure-sensitive materials, and a variety of tickets, tags, labels and other converted products. Its clientele is spread across the United States, Europe, Asia, Latin America and other regions.
AVY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Industrial Products stock. AVY has a Momentum Style Score of B, and shares are up 1.1% over the past four weeks.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $10.00 per share. AVY also boasts an average earnings surprise of +2.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AVY should be on investors' short list.
MENTOR, Ohio--(BUSINESS WIRE)--Avery Dennison Corporation (NYSE: AVY), a leading global materials science and digital identification solutions company, today announced it will host its second quarter 2026 earnings conference call at 11:00 a.m. ET on Thursday, July 30, 2026. The company’s second quarter 2026 earnings release will be issued that morning at approximately 6:45 a.m. ET.
The event will be webcast live, and the replay will be available on Avery Dennison's Investor Relations website (www.investors.averydennison.com).
About Avery Dennison
Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste and mitigate loss, advance sustainability, circularity and transparency and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2025 were $8.9 billion. Learn more at www.averydennison.com.
Assenagon Asset Management S.A. decreased its position in Avery Dennison Corporation (NYSE:AVY – Free Report) by 85.1% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 22,203 shares of the industrial products company’s stock after selling 126,823 shares during the period. Assenagon Asset Management S.A.’s holdings in Avery Dennison were worth $4,038,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Avery Dennison by 3.6% during the third quarter. Vanguard Group Inc. now owns 10,379,137 shares of the industrial products company’s stock valued at $1,683,185,000 after buying an additional 361,231 shares during the period. Wellington Management Group LLP boosted its position in Avery Dennison by 12.5% during the 3rd quarter. Wellington Management Group LLP now owns 5,808,960 shares of the industrial products company’s stock worth $942,039,000 after acquiring an additional 644,664 shares during the period. State Street Corp boosted its position in Avery Dennison by 0.6% during the 3rd quarter. State Street Corp now owns 3,667,474 shares of the industrial products company’s stock worth $594,754,000 after acquiring an additional 20,860 shares during the period. Ameriprise Financial Inc. grew its stake in Avery Dennison by 30.9% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,841,191 shares of the industrial products company’s stock valued at $298,613,000 after acquiring an additional 435,156 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Avery Dennison by 4.9% in the 3rd quarter. Invesco Ltd. now owns 1,659,862 shares of the industrial products company’s stock valued at $269,180,000 after purchasing an additional 77,272 shares during the period. 94.17% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several research firms have weighed in on AVY. Citigroup upped their price objective on shares of Avery Dennison from $188.00 to $201.00 and gave the company a “neutral” rating in a research note on Friday, February 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Avery Dennison in a research note on Monday, December 29th. BMO Capital Markets upped their price target on shares of Avery Dennison from $215.00 to $224.00 and gave the stock an “outperform” rating in a research note on Friday, February 6th. JPMorgan Chase & Co. increased their price objective on Avery Dennison from $195.00 to $205.00 and gave the stock an “overweight” rating in a report on Monday, February 9th. Finally, Truist Financial boosted their target price on Avery Dennison from $213.00 to $234.00 and gave the company a “buy” rating in a research note on Tuesday, January 6th. Nine analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Avery Dennison has an average rating of “Moderate Buy” and a consensus target price of $208.45.
Get Our Latest Research Report on AVY
Avery Dennison Stock Down 0.1% Avery Dennison stock opened at $167.70 on Monday. The company has a current ratio of 1.13, a quick ratio of 0.76 and a debt-to-equity ratio of 1.43. Avery Dennison Corporation has a 1-year low of $156.23 and a 1-year high of $199.54. The firm’s fifty day simple moving average is $184.06 and its 200-day simple moving average is $177.04. The company has a market capitalization of $12.90 billion, a P/E ratio of 19.10, a P/E/G ratio of 3.00 and a beta of 0.97.
Avery Dennison (NYSE:AVY – Get Free Report) last posted its earnings results on Wednesday, February 4th. The industrial products company reported $2.45 EPS for the quarter, topping the consensus estimate of $2.40 by $0.05. Avery Dennison had a net margin of 7.77% and a return on equity of 33.84%. The firm had revenue of $2.27 billion for the quarter, compared to the consensus estimate of $2.29 billion. During the same period in the prior year, the business posted $2.38 earnings per share. The business’s quarterly revenue was up 3.9% on a year-over-year basis. Avery Dennison has set its Q1 2026 guidance at 2.400-2.46 EPS. Sell-side analysts forecast that Avery Dennison Corporation will post 9.96 earnings per share for the current fiscal year.
Avery Dennison Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 18th. Investors of record on Wednesday, March 4th were paid a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, March 4th. Avery Dennison’s dividend payout ratio (DPR) is presently 42.82%.
Insider Activity at Avery Dennison In other news, SVP Ignacio J. Walker sold 1,156 shares of Avery Dennison stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $192.95, for a total value of $223,050.20. Following the transaction, the senior vice president owned 7,588 shares of the company’s stock, valued at $1,464,104.60. This trade represents a 13.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Mitchell R. Butier sold 13,000 shares of the business’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $171.50, for a total transaction of $2,229,500.00. Following the completion of the sale, the director owned 198,147 shares of the company’s stock, valued at $33,982,210.50. The trade was a 6.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 34,156 shares of company stock valued at $5,930,150. Corporate insiders own 0.81% of the company’s stock.
Avery Dennison Profile (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
Read More Five stocks we like better than Avery Dennison Want to see what other hedge funds are holding AVY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Avery Dennison Corporation (NYSE:AVY – Free Report).
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MENTOR, Ohio--(BUSINESS WIRE)--Avery Dennison Corporation (NYSE: AVY), a leading global materials science and digital identification solutions company, today announced it will host its first quarter 2026 earnings conference call at 11:00 a.m. ET on Tuesday, April 28, 2026. The company's first quarter 2026 earnings release will be issued that morning at approximately 6:45 a.m. ET. The event will be webcast live, and the replay will be available on Avery Dennison's Investor Relations website (www.
Massachusetts Financial Services Co. MA increased its stake in shares of Avery Dennison Corporation (NYSE:AVY – Free Report) by 4.3% during the 4th quarter, according to its most recent filing with the SEC. The institutional investor owned 1,008,727 shares of the industrial products company’s stock after acquiring an additional 41,714 shares during the period. Massachusetts Financial Services Co. MA owned approximately 1.31% of Avery Dennison worth $183,467,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Portside Wealth Group LLC lifted its position in Avery Dennison by 4.7% during the 3rd quarter. Portside Wealth Group LLC now owns 1,340 shares of the industrial products company’s stock worth $217,000 after acquiring an additional 60 shares in the last quarter. Capital Investment Advisors LLC lifted its position in Avery Dennison by 3.4% during the 4th quarter. Capital Investment Advisors LLC now owns 1,838 shares of the industrial products company’s stock worth $334,000 after acquiring an additional 61 shares in the last quarter. Resources Management Corp CT ADV raised its position in shares of Avery Dennison by 0.8% in the 2nd quarter. Resources Management Corp CT ADV now owns 7,800 shares of the industrial products company’s stock valued at $1,369,000 after purchasing an additional 62 shares in the last quarter. Mather Group LLC. raised its position in shares of Avery Dennison by 3.6% in the 4th quarter. Mather Group LLC. now owns 1,860 shares of the industrial products company’s stock valued at $338,000 after purchasing an additional 64 shares in the last quarter. Finally, Arizona State Retirement System raised its position in shares of Avery Dennison by 0.3% in the 3rd quarter. Arizona State Retirement System now owns 23,151 shares of the industrial products company’s stock valued at $3,754,000 after purchasing an additional 71 shares in the last quarter. 94.17% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In A number of equities analysts have issued reports on the company. BMO Capital Markets upped their target price on Avery Dennison from $215.00 to $224.00 and gave the company an “outperform” rating in a research report on Friday, February 6th. Citigroup upped their target price on Avery Dennison from $188.00 to $201.00 and gave the company a “neutral” rating in a research report on Friday, February 6th. Deutsche Bank Aktiengesellschaft assumed coverage on Avery Dennison in a research report on Wednesday, April 1st. They issued a “buy” rating and a $200.00 target price on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Avery Dennison in a research report on Friday, March 27th. Finally, JPMorgan Chase & Co. upped their target price on Avery Dennison from $195.00 to $205.00 and gave the company an “overweight” rating in a research report on Monday, February 9th. Ten research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $207.42.
View Our Latest Stock Report on AVY
Avery Dennison Price Performance Shares of NYSE AVY opened at $171.04 on Monday. Avery Dennison Corporation has a twelve month low of $156.23 and a twelve month high of $199.54. The company has a current ratio of 1.13, a quick ratio of 0.76 and a debt-to-equity ratio of 1.43. The company has a market capitalization of $13.16 billion, a price-to-earnings ratio of 19.48, a price-to-earnings-growth ratio of 2.82 and a beta of 1.00. The business has a 50 day simple moving average of $181.14 and a 200-day simple moving average of $177.51.
Avery Dennison (NYSE:AVY – Get Free Report) last issued its quarterly earnings results on Wednesday, February 4th. The industrial products company reported $2.45 earnings per share for the quarter, beating analysts’ consensus estimates of $2.40 by $0.05. Avery Dennison had a return on equity of 33.84% and a net margin of 7.77%.The business had revenue of $2.27 billion during the quarter, compared to the consensus estimate of $2.29 billion. During the same period in the previous year, the business earned $2.38 EPS. The business’s quarterly revenue was up 3.9% on a year-over-year basis. Avery Dennison has set its Q1 2026 guidance at 2.400-2.46 EPS. As a group, equities research analysts expect that Avery Dennison Corporation will post 9.96 earnings per share for the current year.
Avery Dennison Announces Dividend The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were issued a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date was Wednesday, March 4th. Avery Dennison’s payout ratio is 42.82%.
Insider Buying and Selling In other news, SVP Ignacio J. Walker sold 1,156 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $192.95, for a total value of $223,050.20. Following the completion of the sale, the senior vice president directly owned 7,588 shares in the company, valued at approximately $1,464,104.60. The trade was a 13.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mitchell R. Butier sold 13,000 shares of the company’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $171.50, for a total value of $2,229,500.00. Following the transaction, the director owned 198,147 shares of the company’s stock, valued at approximately $33,982,210.50. The trade was a 6.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 34,156 shares of company stock valued at $5,930,150 over the last quarter. Company insiders own 0.81% of the company’s stock.
About Avery Dennison (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
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Avery Dennison (AVY - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of office products is expected to post quarterly earnings of $2.41 per share in its upcoming report, which represents a year-over-year change of +4.8%.
Revenues are expected to be $2.27 billion, up 5.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.16% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Avery Dennison?For Avery Dennison, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.25%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Avery Dennison will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Avery Dennison would post earnings of $2.4 per share when it actually produced earnings of $2.45, delivering a surprise of +2.08%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Avery Dennison doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
CPC Advisors LLC bought a new stake in Avery Dennison Corporation (NYSE:AVY – Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 8,052 shares of the industrial products company’s stock, valued at approximately $1,464,000.
Other large investors have also modified their holdings of the company. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of Avery Dennison in the third quarter valued at about $29,000. Bartlett & CO. Wealth Management LLC grew its stake in Avery Dennison by 16,900.0% during the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 170 shares of the industrial products company’s stock valued at $31,000 after purchasing an additional 169 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new stake in Avery Dennison during the 3rd quarter valued at approximately $36,000. CYBER HORNET ETFs LLC acquired a new stake in Avery Dennison during the 2nd quarter valued at approximately $37,000. Finally, True Wealth Design LLC grew its stake in Avery Dennison by 285.7% during the 4th quarter. True Wealth Design LLC now owns 216 shares of the industrial products company’s stock valued at $39,000 after purchasing an additional 160 shares in the last quarter. Institutional investors and hedge funds own 94.17% of the company’s stock.
Analysts Set New Price Targets A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. raised their price objective on Avery Dennison from $195.00 to $205.00 and gave the company an “overweight” rating in a research note on Monday, February 9th. Raymond James Financial set a $192.00 price objective on Avery Dennison in a research note on Tuesday. Deutsche Bank Aktiengesellschaft assumed coverage on Avery Dennison in a research note on Wednesday, April 1st. They set a “buy” rating and a $200.00 price objective for the company. BMO Capital Markets raised their price objective on Avery Dennison from $215.00 to $224.00 and gave the company an “outperform” rating in a research note on Friday, February 6th. Finally, Citigroup lowered their price objective on Avery Dennison from $201.00 to $190.00 and set a “neutral” rating for the company in a research note on Tuesday, April 14th. Ten research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $207.64.
Get Our Latest Stock Analysis on AVY
Insider Activity at Avery Dennison In other news, Director Mitchell R. Butier sold 20,000 shares of Avery Dennison stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $173.88, for a total value of $3,477,600.00. Following the completion of the transaction, the director owned 211,147 shares in the company, valued at approximately $36,714,240.36. This trade represents a 8.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Ignacio J. Walker sold 1,156 shares of Avery Dennison stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $192.95, for a total value of $223,050.20. Following the completion of the transaction, the senior vice president owned 7,588 shares of the company’s stock, valued at approximately $1,464,104.60. The trade was a 13.22% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 34,156 shares of company stock valued at $5,930,150. Insiders own 0.81% of the company’s stock.
Avery Dennison Price Performance Shares of AVY opened at $169.75 on Wednesday. The firm has a market cap of $13.06 billion, a price-to-earnings ratio of 19.33, a PEG ratio of 2.84 and a beta of 1.00. The stock has a 50 day moving average of $178.35 and a 200-day moving average of $177.94. The company has a current ratio of 1.13, a quick ratio of 0.76 and a debt-to-equity ratio of 1.43. Avery Dennison Corporation has a 52 week low of $156.23 and a 52 week high of $199.54.
Avery Dennison (NYSE:AVY – Get Free Report) last issued its earnings results on Wednesday, February 4th. The industrial products company reported $2.45 EPS for the quarter, topping the consensus estimate of $2.40 by $0.05. The company had revenue of $2.27 billion during the quarter, compared to analyst estimates of $2.29 billion. Avery Dennison had a return on equity of 33.84% and a net margin of 7.77%.The business’s revenue was up 3.9% on a year-over-year basis. During the same quarter last year, the firm earned $2.38 EPS. Avery Dennison has set its Q1 2026 guidance at 2.400-2.46 EPS. As a group, analysts forecast that Avery Dennison Corporation will post 10.1 EPS for the current year.
Avery Dennison Announces Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were given a $0.94 dividend. The ex-dividend date was Wednesday, March 4th. This represents a $3.76 annualized dividend and a dividend yield of 2.2%. Avery Dennison’s dividend payout ratio (DPR) is presently 42.82%.
Avery Dennison Profile (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
Further Reading Five stocks we like better than Avery Dennison Want to see what other hedge funds are holding AVY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Avery Dennison Corporation (NYSE:AVY – Free Report).
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Key Takeaways Avery Dennison is set to report Q1'26 results, with revenues seen rising 5.7% and EPS up 4.7% y/y.AVY faces margin pressure from higher raw material, labor and freight costs despite productivity gains.The Materials and Solutions segments are expected to grow, though Solutions profits may decline due to costs. Avery Dennison Corporation (AVY - Free Report) is scheduled to report first-quarter 2026 results before the opening bell on April 28, 2026.
The Zacks Consensus Estimate for AVY’s first-quarter revenues is pegged at $2.27 billion, indicating a 5.7% rise from the year-ago reported figure.
Image Source: Zacks Investment Research
The consensus estimate for AVY’s earnings has moved down in the past 60 days. The consensus estimate is pegged at $2.41 per share, indicating a year-over-year rise of 4.7%.
AVY’s Earnings Surprise HistoryAvery Dennison’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 1.3%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Avery DennisonOur proven model does not conclusively predict an earnings beat for AVY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -0.16%.
Zacks Rank: AVY currently carries a Zacks Rank #4 (Sell).
Factors Likely to Have Shaped AVY’s Q1 PerformanceAvery Dennison’s first-quarter results are likely to reflect improved volumes in both segments. However, higher raw material, labor and freight costs are expected to have impacted the company’s margins. The impacts are anticipated to have been offset by AVY’s productivity improvement and cost-saving actions.
Our model predicts the Materials Group segment’s revenues to rise 5.4% year over year in the quarter to $1.56 billion. The upside will be driven by growth in high-value categories, including Intelligent Labels, and growth in graphics and reflectives. Our estimate for the Materials Group segment’s adjusted operating profit is pinned at $237 million, indicating year-over-year growth of 3.1%.
High-value categories and productivity are expected to have aided the Solutions Group segment's growth. Our model predicts the Solutions Group segment’s revenues to be $701 million, indicating an increase of 4.9% from the prior-year quarter’s actual.
Our estimate for the segment’s operating profit is pinned at $65 million, implying a decrease of 4.3% from the year-ago quarter’s reported figure. Higher employee-related costs and growth
Investments are expected to have hurt margins.
Avery Dennison Stock’s Price PerformanceAVY shares have lost 1.5% in the past year compared with the industry’s decline of 11.1%.
Image Source: Zacks Investment Research
Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Hubbell Incorporated (HUBB - Free Report) , slated to release first-quarter 2026 results on April 30, has an Earnings ESP of +1.27% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hubbell’s first-quarter 2026 earnings is pegged at $3.87 per share, suggesting a year-over-year rise of 10.6%. HUBB has a trailing four-quarter average surprise of 2.8%.
Deere & Company (DE - Free Report) , scheduled to release second-quarter fiscal 2026 results on May 21, has an Earnings ESP of +6.24% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2026 earnings is pegged at $5.80 per share, indicating a year-over-year dip of 12.6%. DE has a trailing four-quarter average surprise of 11.2%.
Illinois Tool Works Inc. (ITW - Free Report) , slated to release first-quarter 2026 results on April 30, has an Earnings ESP of +0.30% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Illinois Tool Works’ first-quarter 2026 earnings is pegged at $2.55 per share, implying a year-over-year rise of 7.1%. ITW has a trailing four-quarter average surprise of 2.1%.
Cwm LLC increased its position in shares of Avery Dennison Corporation (NYSE:AVY – Free Report) by 88.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 13,604 shares of the industrial products company’s stock after purchasing an additional 6,367 shares during the quarter. Cwm LLC’s holdings in Avery Dennison were worth $2,474,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also bought and sold shares of the company. Bartlett & CO. Wealth Management LLC lifted its position in Avery Dennison by 16,900.0% during the fourth quarter. Bartlett & CO. Wealth Management LLC now owns 170 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 169 shares during the period. Steigerwald Gordon & Koch Inc. bought a new position in Avery Dennison in the third quarter valued at approximately $29,000. CYBER HORNET ETFs LLC bought a new position in Avery Dennison in the second quarter valued at approximately $37,000. Sound Income Strategies LLC increased its stake in Avery Dennison by 51.1% in the fourth quarter. Sound Income Strategies LLC now owns 213 shares of the industrial products company’s stock valued at $40,000 after acquiring an additional 72 shares during the last quarter. Finally, True Wealth Design LLC increased its stake in Avery Dennison by 285.7% in the fourth quarter. True Wealth Design LLC now owns 216 shares of the industrial products company’s stock valued at $39,000 after acquiring an additional 160 shares during the last quarter. Institutional investors own 94.17% of the company’s stock.
Insider Buying and Selling at Avery Dennison In other news, Director Mitchell R. Butier sold 20,000 shares of the firm’s stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $173.88, for a total transaction of $3,477,600.00. Following the completion of the transaction, the director owned 211,147 shares of the company’s stock, valued at approximately $36,714,240.36. This trade represents a 8.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Ignacio J. Walker sold 1,156 shares of the firm’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $192.95, for a total transaction of $223,050.20. Following the transaction, the senior vice president directly owned 7,588 shares of the company’s stock, valued at $1,464,104.60. The trade was a 13.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 34,156 shares of company stock valued at $5,930,150 in the last ninety days. Insiders own 0.81% of the company’s stock.
Analysts Set New Price Targets AVY has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Avery Dennison in a research note on Friday, March 27th. Deutsche Bank Aktiengesellschaft started coverage on Avery Dennison in a research report on Wednesday, April 1st. They set a “buy” rating and a $200.00 price objective for the company. BMO Capital Markets upped their price objective on Avery Dennison from $215.00 to $224.00 and gave the stock an “outperform” rating in a research report on Friday, February 6th. UBS Group dropped their price objective on Avery Dennison from $226.00 to $222.00 and set a “buy” rating for the company in a research report on Friday, April 10th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Avery Dennison from $195.00 to $205.00 and gave the company an “overweight” rating in a report on Monday, February 9th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Avery Dennison has a consensus rating of “Moderate Buy” and a consensus target price of $207.11.
Get Our Latest Analysis on AVY
Avery Dennison Stock Down 1.2% Shares of AVY opened at $165.42 on Friday. Avery Dennison Corporation has a 52 week low of $156.23 and a 52 week high of $199.54. The stock has a market capitalization of $12.72 billion, a price-to-earnings ratio of 18.84, a PEG ratio of 2.77 and a beta of 1.00. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.76 and a current ratio of 1.13. The stock has a fifty day moving average of $176.66 and a 200-day moving average of $177.81.
Avery Dennison (NYSE:AVY – Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The industrial products company reported $2.45 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.05. The company had revenue of $2.27 billion during the quarter, compared to analysts’ expectations of $2.29 billion. Avery Dennison had a return on equity of 33.84% and a net margin of 7.77%.Avery Dennison’s revenue was up 3.9% compared to the same quarter last year. During the same period in the prior year, the company earned $2.38 EPS. Avery Dennison has set its Q1 2026 guidance at 2.400-2.46 EPS. As a group, sell-side analysts anticipate that Avery Dennison Corporation will post 10.07 earnings per share for the current fiscal year.
Avery Dennison Announces Dividend The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were issued a dividend of $0.94 per share. This represents a $3.76 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Wednesday, March 4th. Avery Dennison’s payout ratio is 42.82%.
About Avery Dennison (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
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Brindle & Bay Financial Advisors LLC purchased a new stake in Avery Dennison Corporation (NYSE:AVY – Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 4,300 shares of the industrial products company’s stock, valued at approximately $782,000.
Several other large investors have also modified their holdings of AVY. Vanguard Group Inc. increased its holdings in shares of Avery Dennison by 3.6% in the 3rd quarter. Vanguard Group Inc. now owns 10,379,137 shares of the industrial products company’s stock valued at $1,683,185,000 after acquiring an additional 361,231 shares during the last quarter. Johnson Investment Counsel Inc. increased its holdings in shares of Avery Dennison by 11.7% in the 3rd quarter. Johnson Investment Counsel Inc. now owns 351,635 shares of the industrial products company’s stock valued at $57,025,000 after acquiring an additional 36,698 shares during the last quarter. Fieldview Capital Management LLC increased its holdings in shares of Avery Dennison by 412.7% in the 3rd quarter. Fieldview Capital Management LLC now owns 26,265 shares of the industrial products company’s stock valued at $4,259,000 after acquiring an additional 21,142 shares during the last quarter. WCM Investment Management LLC bought a new stake in shares of Avery Dennison in the 3rd quarter valued at approximately $2,785,000. Finally, CPC Advisors LLC bought a new stake in shares of Avery Dennison in the 4th quarter valued at approximately $1,464,000. Institutional investors and hedge funds own 94.17% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft assumed coverage on Avery Dennison in a report on Wednesday, April 1st. They issued a “buy” rating and a $200.00 price target for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Avery Dennison in a report on Friday, March 27th. Truist Financial cut their price target on Avery Dennison from $233.00 to $223.00 and set a “buy” rating on the stock in a report on Wednesday, April 15th. JPMorgan Chase & Co. boosted their price objective on Avery Dennison from $195.00 to $205.00 and gave the company an “overweight” rating in a research report on Monday, February 9th. Finally, BMO Capital Markets increased their target price on Avery Dennison from $215.00 to $224.00 and gave the stock an “outperform” rating in a research report on Friday, February 6th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Avery Dennison presently has an average rating of “Moderate Buy” and an average target price of $207.11.
View Our Latest Analysis on Avery Dennison
Avery Dennison Price Performance Shares of NYSE AVY opened at $165.42 on Friday. Avery Dennison Corporation has a 1-year low of $156.23 and a 1-year high of $199.54. The company has a debt-to-equity ratio of 1.43, a current ratio of 1.13 and a quick ratio of 0.76. The business’s fifty day moving average price is $176.66 and its two-hundred day moving average price is $177.92. The firm has a market capitalization of $12.72 billion, a PE ratio of 18.84, a P/E/G ratio of 2.77 and a beta of 1.00.
Avery Dennison (NYSE:AVY – Get Free Report) last issued its earnings results on Wednesday, February 4th. The industrial products company reported $2.45 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.05. Avery Dennison had a return on equity of 33.84% and a net margin of 7.77%.The firm had revenue of $2.27 billion for the quarter, compared to analyst estimates of $2.29 billion. During the same period last year, the company earned $2.38 earnings per share. The firm’s revenue for the quarter was up 3.9% on a year-over-year basis. Avery Dennison has set its Q1 2026 guidance at 2.400-2.46 EPS. On average, research analysts expect that Avery Dennison Corporation will post 10.07 EPS for the current year.
Avery Dennison Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Shareholders of record on Wednesday, March 4th were given a $0.94 dividend. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $3.76 annualized dividend and a yield of 2.3%. Avery Dennison’s dividend payout ratio (DPR) is currently 42.82%.
Insider Buying and Selling at Avery Dennison In other news, SVP Ignacio J. Walker sold 1,156 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $192.95, for a total transaction of $223,050.20. Following the transaction, the senior vice president directly owned 7,588 shares of the company’s stock, valued at approximately $1,464,104.60. This trade represents a 13.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mitchell R. Butier sold 20,000 shares of the firm’s stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $173.88, for a total value of $3,477,600.00. Following the transaction, the director directly owned 211,147 shares in the company, valued at $36,714,240.36. This trade represents a 8.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 34,156 shares of company stock valued at $5,930,150. Company insiders own 0.81% of the company’s stock.
Avery Dennison Profile (Free Report)
Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.
The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.
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MENTOR, Ohio--(BUSINESS WIRE)--Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its first quarter ended March 31, 2026. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year. “We delivered strong first quarter results, with adjusted.
Avery Dennison (AVY - Free Report) came out with quarterly earnings of $2.47 per share, beating the Zacks Consensus Estimate of $2.41 per share. This compares to earnings of $2.3 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.60%. A quarter ago, it was expected that this maker of office products would post earnings of $2.4 per share when it actually produced earnings of $2.45, delivering a surprise of +2.08%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Avery Dennison, which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.3 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.21%. This compares to year-ago revenues of $2.15 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Avery Dennison shares have lost about 9.3% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Avery Dennison?While Avery Dennison has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Avery Dennison was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.58 on $2.31 billion in revenues for the coming quarter and $10.07 on $9.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AptarGroup (ATR - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This maker of consumer-product dispensing systems is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of -4.2%. The consensus EPS estimate for the quarter has been revised 3% lower over the last 30 days to the current level.
AptarGroup's revenues are expected to be $964.39 million, up 8.7% from the year-ago quarter.
For the quarter ended March 2026, Avery Dennison (AVY - Free Report) reported revenue of $2.3 billion, up 7% over the same period last year. EPS came in at $2.47, compared to $2.30 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.27 billion, representing a surprise of +1.21%. The company delivered an EPS surprise of +2.6%, with the consensus EPS estimate being $2.41.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Avery Dennison performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Solutions Group: $649.2 million versus the two-analyst average estimate of $690.57 million. The reported number represents a year-over-year change of -2.8%.Net Sales- Materials Group: $1.65 billion versus the two-analyst average estimate of $1.57 billion. The reported number represents a year-over-year change of +11.4%.Adjusted Operating income (loss)- Corporate expense: $-23 million versus the two-analyst average estimate of $-21.05 million.Adjusted Operating income (loss)- Solutions Group: $58.5 million compared to the $69.08 million average estimate based on two analysts.Adjusted Operating income (loss)- Materials Group: $254.2 million versus the two-analyst average estimate of $239.56 million.View all Key Company Metrics for Avery Dennison here>>>
Shares of Avery Dennison have returned -1.9% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways Avery Dennison Q1 EPS grow 7.4% and revenues rise 7% y/y.AVY benefited from volume gains and cost control, keeping margins steady despite currency headwinds.Avery Dennison saw strong Materials growth, while Solutions lagged and the free cash flow turned positive. Avery Dennison Corporation (AVY - Free Report) has posted adjusted earnings of $2.47 per share for the first quarter of 2026, rising 7.4% from the year-ago period and beating the Zacks Consensus Estimate of $2.41. Revenues came in at $2.298 billion, growing 7% year over year and surpassing the consensus mark of $2.271 billion by 1.2%.
The quarter featured modest organic growth and steady profitability. The company gained from volume-led performance and continued cost management.
Sales advanced 2.3% excluding currency, as a 4.7% foreign-currency headwind weighed on reported growth. Organic sales increased 1.1%, while acquisitions were a 1.2% drag on the quarter’s growth bridge. Our model expected organic sales to inch up 0.2%, and acquisitions to have a positive impact of 1%.
Avery Dennison Keeps Profitability SteadyGross profit was $664.8 million, up from $621.5 million a year ago, with the gross margin essentially steady at 28.9%. Operating income was $271.9 million, marking a year-over-year increase of 6.8%. The operating margin came in at 11.8% for the quarter compared with the prior-year quarter’s 11.9%.
Adjusted EBITDA was $376.5 million, which marked a year-over-year increase of 6.8%. The adjusted EBITDA margin came in at 16.4%, flat with the first quarter of 2025.
AVY’s Segments Diverge on Growth & MarginsMaterials Group delivered reported sales of $1.65 billion, up 11.4% year over year. Sales rose 3.6% excluding currency and 1.9% organically. We estimated revenues of $1.56 billion for this segment. Mid-single-digit volume/mix growth was partly offset by deflation-related price reductions. The segment’s adjusted operating profit increased 10.4% year over year to $254 million. Our estimate was $237 million.
Solutions Group sales were $649.2 million, down 2.8% year over year, with sales down 0.9% excluding currency and 0.9% organically. We estimated sales of $701 million for this segment. The company noted growth in higher-value categories, including Embelex and Vestcom, while Intelligent Labels and base categories were softer. The segment’s adjusted operating income dipped 14.2% year over year at $58.5 million. Our estimate was $65 million.
Avery Dennison’s Cash Flow Swing Is MeaningfulAVY generated an adjusted free cash flow of $104.4 million in the quarter, a sharp improvement from a negative $53.1 million in the year-ago period.
Capital returns remained active. The company returned $133 million to shareholders, including $72.3 million in dividends and $60.6 million in share repurchases, and noted that its share count at the quarter-end was down 1.9 million from a year ago (net of dilution from long-term incentive awards). Cash and cash equivalents ended at $255.1 million compared with 196 million in the prior-year quarter’s end. Net debt to adjusted EBITDA was 2.4X.
AVY’s Q2 ViewFor the second quarter of 2026, the company guided adjusted earnings to be $2.43-$2.53. The company expects reported sales growth of 2-4% and an organic sales increase of 0-2%.
Avery Dennison Stock’s Price PerformanceAVY shares have lost 1% in the past year compared with the industry’s decline of 10.4%. In comparison, the broader Zacks Industrial Products sector has returned 39.5% and the S&P 500 has grown 35.6%.
Image Source: Zacks Investment Research
AVY’s Zacks RankIndustrial Product Stocks Awaiting ResultsAptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2026 results on April 30. The Zacks Consensus Estimate for ATR’s first-quarter 2026 earnings is pegged at $1.15 per share, indicating a year-over-year dip of 4.2%.
The consensus estimate for AptarGroup’s top line is pegged at $963 million, indicating an increase of 8.5% from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 3.1%.
Silgan Holdings (SLGN - Free Report) is slated to release first-quarter 2026 results on April 29. The Zacks Consensus Estimate for SLGN’s first-quarter 2026 earnings is pegged at 74 cents per share, indicating a year-over-year dip of 9.8%.
The consensus estimate for Silgan’s top line is pegged at $1.49 billion, indicating an increase of 1.8% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.8%.
Q1 Performance of a Packaging StockPackaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. Packaging Corp’s results beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported Packaging Corp’s results, though special items weighed on reported profitability.
Avery Dennison Corp (AVY) Q1 2026 Earnings Call Highlights: Navigating Growth Amidst Challenges Avery Dennison Corp (AVY) reports a 7% increase in adjusted EPS and strategic investments, while addressing segment challenges and inflationary pressures. Summary
Organic Sales Growth: Up 1% in the first quarter.Adjusted EPS: Increased by 7% year-over-year to $2.47.Materials Group Sales Growth: Reported sales up 11%, organic sales up 2%.Solutions Group Sales: Decreased 3% reported, down 1% on an organic basis.Adjusted EBITDA Margin: 16.4% for the quarter.Adjusted Free Cash Flow: $104 million generated in the quarter.Net Debt to Adjusted EBITDA Ratio: 2.4 at quarter-end.Shareholder Returns: $133 million returned through dividends and share repurchases.Second Quarter Outlook: Expected organic sales growth of 0% to 2% and adjusted EPS range of $2.43 to $2.53.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Avery Dennison Corp AVY reported a 7% year-over-year increase in adjusted EPS, demonstrating strong earnings growth.The company achieved a 1% organic sales growth, driven by mid-single-digit volume mix growth.Materials Group delivered an 11% reported sales growth, with organic sales up 2%, highlighting the strength of this segment.Avery Dennison Corp (AVY) successfully managed raw material inflation through strategic pricing and material re-engineering.The company made a significant $75 million investment in Williot, enhancing its intelligent labels platform and positioning it as a preferred partner in retail, food, and logistics. Negative Points Solutions Group reported a 3% decrease in sales, with organic sales down 1%, indicating challenges in this segment.Intelligent Labels sales were down low single-digits, slightly below growth expectations, due to softer logistics demand.High employee-related costs and lower base category volumes negatively impacted profitability in the Solutions Group.The company anticipates high-single-digit sequential inflation in the second quarter, posing a challenge to cost management.Avery Dennison Corp (AVY) experienced a temporary softness in certain high-value categories, affecting overall performance. Q & A Highlights Q: How did the Intelligent Labels segment perform relative to expectations, and what is the outlook for 2026?
A: The Intelligent Labels segment performed slightly below expectations in Q1, primarily due to logistics volume issues and inventory management for new chips. Despite this, growth is anticipated for the entire year, particularly in the second half, driven by new program ramps in food and apparel sectors.
Q: Can you elaborate on the revenue bridge for the quarter and the impact of pricing on future quarters?
A: For Q2, we expect low to mid-single-digit price impacts to offset inflationary pressures. Year-over-year, there is some carryover deflation affecting pricing. We anticipate a slight overall net price increase in Q2. High-value categories in materials faced idiosyncratic challenges but are expected to return to growth.
Q: Why is Q2 earnings guidance flat compared to Q1, despite typical seasonal strength?
A: The flat guidance is due to a $0.05 pre-buy benefit in Q1, creating a $0.10 swing into Q2. Seasonal benefits are offset by this pre-buy impact. We expect sequential earnings growth throughout the year, driven by productivity, share buybacks, and high-value category growth.
Q: What is the impact of the logistics segment's chip change and the recent investment in Wiliot?
A: The logistics segment's softness was mainly due to customer demand, with the chip change being a temporary issue. The investment in Wiliot enhances our Intelligent Labels platform, focusing on condition monitoring, and expands our market opportunities, particularly in food and pharmaceuticals.
Q: How are you managing pre-buying and ensuring supply chain stability?
A: We manage pre-buying by ensuring supply certainty and managing price increases. Our global scale and procurement excellence provide a competitive advantage in supply chain stability. Current pre-buying is at a much lower scale than in previous years, and we are closely monitoring inventory levels.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways AMCR Q3 revenues seen at $5.7B, up 70.9% y/y, with EPS projected at 96 cents, up 6.7%.Amcor faces weak demand and inventory cuts, though e-commerce and pricing gains support volumes.AMCR sees cost pressure from resin volatility and inflation; the Berry acquisition boosts segment sales. Amcor Plc (AMCR - Free Report) is scheduled to report third-quarter fiscal 2026 results on May 6, before the opening bell.
The Zacks Consensus Estimate for AMCR’s fiscal third-quarter revenues is pegged at $5.70 billion, indicating a 70.9% surge from the year-ago reported figure.
The consensus estimate for earnings is pegged at 96 cents per share. The consensus estimate indicates growth of 6.7% from the year-ago quarter's actual. The estimate has moved down 3% in the past 60 days.
Image Source: Zacks Investment Research
AMCR’s Earnings Surprise HistoryAmcor’s earnings met the Zacks Consensus Estimate in two of the trailing four quarters, beat in one and missed in one, the average negative surprise being 0.29%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for AmcorOur proven model does not conclusively predict an earnings beat for Amcor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
AMCR’s Earnings ESP: The Earnings ESP for Amcor is -0.95%.
Amcor’s Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped AMCR’s Q3 PerformanceAmcor’s total volume had been bearing the brunt of weak consumer demand across its key markets due to the inflationary environment. Customers have also been lowering their inventory, which has impacted demand. Nonetheless, Amcor is expected to have gained from the rise in e-commerce activities worldwide.
We expect 3.7% growth in volumes in the fiscal third quarter. Overall price/mix benefits are expected to be a positive 1.6% for the quarter and currency impacts are likely to have added another 3.5%.
Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. The impacts of this are expected to be reflected in the company’s fiscal third-quarter earnings results.
Our Q3 Projections for Amcor’s SegmentsWe expect volume for the Global Flexible Packaging Solutions segment’s fiscal third quarter to be 3.6%. The price/mix is expected to be 1.7% and 3%, respectively. Our sales projection for the Global Flexible Packaging Solutions segment is pegged at $3.4 billion, indicating 30.5% year-over-year growth.
Our model estimates a 4% jump in volumes for the Global Rigid Packaging Solutions segment, a price/mix increase of 1.5% and a favorable currency impact of 5.3%. The sales projection for the segment is $2.3 billion, indicating a 221.8% year-over-year upsurge, including the positive impacts of the Berry Global acquisition, estimated at 210%.
AMCR’s Share Price PerformanceOver the past year, shares of Amcor have lost 13.4% compared with the industry’s 8.6% decline.
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Recent Earnings Performance of Amcor’s PeerAvery Dennison Corporation (AVY - Free Report) posted adjusted earnings of $2.47 per share for the first quarter of 2026, rising 7.4% from the year-ago period and beating the Zacks Consensus Estimate of $2.41. Avery Dennison’s revenues were $2.298 billion, growing 7% year over year and surpassing the consensus mark of $2.271 billion by 1.2%.
Sales advanced 2.3%, excluding currency, as a 4.7% foreign-currency headwind weighed on reported growth. Organic sales increased 1.1%, while acquisitions were a 1.2% drag on the quarter’s growth bridge.
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. Packaging Corp’s results beat the Zacks Consensus Estimate of earnings $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported Packaging Corp’s results, though special items weighed on reported profitability.
Packaging Stocks Awaiting ResultsKarat Packaging Inc. (KRT - Free Report) is set to release first-quarter 2026 results on May 7. The Zacks Consensus Estimate for Karat Packaging’s first-quarter 2026 earnings is pegged at 32 cents per share, suggesting a year-over-year decline of 3%. The consensus estimate for Karat Packaging’s revenues is pegged at $113 million, indicating a 9% increase from the prior-year quarter’s actual.
Avery Dennison delivered strong Q1 2026 results, with non-GAAP EPS of $2.47 and revenue of $2.3B, both exceeding expectations. The Materials segment drove performance, posting over $1.65B in revenue, up more than 11% year-over-year. AVY's stock experienced volatility, notably declining over 10% after significant insider selling by the Executive Chairman.
Key Takeaways Avery Dennison launched Clima Window Films in India for commercial and luxury residences.Clima films reflect solar heat, helping reduce cooling loads and improve energy efficiency.AVY's Clima range helps manage sunlight, reduce indoor heat, and improve occupant comfort. Avery Dennison Corporation (AVY - Free Report) has launched its Clima Architectural Window Films series in India for commercial and luxury residential buildings. The new range is designed to provide solar control and improve energy efficiency while maintaining the appearance of glass surfaces. The portfolio is aimed at helping architects and developers build energy-efficient buildings.
The Clima range includes four types of window films designed for different needs. Clima Vista keeps glass looking clear and natural while maintaining good visibility. Clima Fusion DR is designed to reduce heat and maintain clear views from indoors. Clima Sterling DR has a silver coating that blocks strong sunlight and helps keep indoor spaces cooler. Clima Ceramic uses advanced non-metal nano particles to reduce heat, offers strong durability, and does not interfere with mobile or digital signals.
Per AVY, the Clima series is made to help buildings deal with high temperatures and strong sunlight, especially in regions like India. The films work by reflecting solar heat, which helps keep indoor spaces cooler and reduces the load on air-conditioning systems. This also improves indoor comfort and supports more efficient energy usage.
The products can also block over 99% of harmful UV rays, which helps prevent furniture and interior items from fading or becoming discolored. They also reduce glare from screens and sunlight while keeping windows looking natural, improving overall comfort for people inside the building.
The Clima series offers solar control solutions that can help reduce heat buildup and improve comfort inside buildings. The product range is designed to address different building requirements while helping manage sunlight, reduce heat, and enhance indoor conditions.
Avery Dennison Stock’s Price PerformanceAVY shares have lost 11% in the past year compared with the industry’s 9.9% decline.
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AVY’s Zacks Rank & Stocks to ConsiderAvery Dennison currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are W.W. Grainger, Inc. (GWW - Free Report) , Intellicheck, Inc. (IDN - Free Report) and MSA Safety Incorporated (MSA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Grainger delivered an average trailing four-quarter earnings surprise of 4.21%. The Zacks Consensus Estimate for GWW’s 2026 earnings is pinned at $45.34 per share, which indicates a year-over-year increase of 14.84%. Grainger shares have risen 22.9% in a year.
Intellicheck delivered an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for IDN’s 2026 earnings is pinned at 17 cents per share, which indicates a year-over-year surge of 183.33%.
MSA Safety delivered an average trailing four-quarter earnings surprise of 6.16%. The Zacks Consensus Estimate for MSA’s 2026 earnings is pinned at $8.86 per share, which indicates a year-over-year increase of 11.73%.