Insights Ahead: Avery Dennison's Quarterly Earnings

Avery Dennison AVY is set to give its latest quarterly earnings report on Wednesday, 2025-04-23. Here's what investors need to know before the announcement.

Analysts estimate that Avery Dennison will report an earnings per share (EPS) of $2.31.

Anticipation surrounds Avery Dennison's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

In the previous earnings release, the company missed EPS by $0.03, leading to a 1.78% increase in the share price the following trading session.

Here's a look at Avery Dennison's past performance and the resulting price change:

Performance of Avery Dennison Shares

Shares of Avery Dennison were trading at $169.03 as of April 21. Over the last 52-week period, shares are down 18.4%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Observations about Avery Dennison

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Avery Dennison.

Analysts have given Avery Dennison a total of 6 ratings, with the consensus rating being Outperform. The average one-year price target is $202.83, indicating a potential 20.0% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Packaging Corp of America, Graphic Packaging Holding and Sonoco Prods, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Packaging Corp of America, with an average 1-year price target of $240.0, suggesting a potential 41.99% upside.
• Analysts currently favor an Neutral trajectory for Graphic Packaging Holding, with an average 1-year price target of $31.0, suggesting a potential 81.66% downside.
• Analysts currently favor an Buy trajectory for Sonoco Prods, with an average 1-year price target of $56.67, suggesting a potential 66.47% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Packaging Corp of America, Graphic Packaging Holding and Sonoco Prods are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Avery Dennison ranks at the top for Revenue Growth and Gross Profit, indicating strong performance in these areas. However, it ranks at the bottom for Return on Equity, suggesting lower profitability compared to peers. Overall, Avery Dennison is positioned favorably among its peers based on the provided metrics.

All You Need to Know About Avery Dennison

Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.

A Deep Dive into Avery Dennison's Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Avery Dennison displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 3.56%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Avery Dennison's net margin excels beyond industry benchmarks, reaching 7.96%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.39%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Avery Dennison's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.06% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Avery Dennison's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.36.

To track all earnings releases for Avery Dennison visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.