Financial Performance - Reported EPS for Q3 2025 was $2.13, with adjusted EPS (non-GAAP) of $2.37, reflecting a 2% increase year-over-year [6]. - Net sales for Q3 2025 reached $2.2 billion, up 1.5% compared to the same period last year, with organic sales remaining comparable to the prior year [6]. - Net income for the three months ended September 27, 2025, was $166.3 million, compared to $181.7 million for the same period in 2024, indicating a decline of 8.5% [29]. - The company’s net income per common share, assuming dilution, was $2.13 for the three months ended September 27, 2025, compared to $2.25 for the same period in 2024, a decrease of 5.3% [29]. - The company reported a net income of $174.0 million for the fourth quarter of 2024 [58]. Sales and Revenue - The Materials Group reported sales of $1.5 billion, a 1.2% increase, while organic sales decreased by 1.9% due to deflation-related price reductions [9]. - The Solutions Group saw reported sales increase by 2.0% to $700 million, with organic sales up 3.6%, driven by high-value categories like Intelligent Labels [9]. - Total net sales for the three months ended September 27, 2025, were $2,215.5 million, a slight increase from $2,183.4 million for the same period in 2024, representing a growth of 1.5% [49]. - The Materials Group reported net sales of $1,516.0 million for the three months ended September 27, 2025, an increase from $1,497.7 million in the same period of 2024 [55]. - The Solutions Group achieved net sales of $699.5 million for the three months ended September 27, 2025, compared to $685.7 million in the prior year, reflecting a growth of 2.6% [55]. Profitability Metrics - Adjusted EBITDA margin (non-GAAP) for Q3 2025 was 16.5%, up from 16.4% in the prior year, driven by productivity benefits [27]. - Adjusted operating income (non-GAAP) for the three months ended September 27, 2025, was $281.1 million, compared to $279.7 million in the prior year, reflecting a growth of 0.5% [51]. - Adjusted EBITDA (non-GAAP) for the nine months ended September 27, 2025, reached $1,085.0 million, up from $1,076.2 million in the same period of 2024, indicating a growth of 0.8% [51]. - The company reported an operating margin of 11.9% for the three months ended September 27, 2025, slightly down from 12.1% in the same period of 2024 [49]. - Adjusted operating margins (non-GAAP) for the Solutions Group were 10.0% for the three months ended September 27, 2025, compared to 11.3% in the prior year [56]. Cash Flow and Liquidity - Cash and cash equivalents increased to $536.3 million as of September 27, 2025, from $212.7 million a year earlier, showing a significant increase of 152.5% [31]. - The company reported a net cash provided by operating activities of $504.6 million for the nine months ended September 27, 2025, down from $587.6 million in the prior year, a decrease of 14.1% [34]. - Net cash provided by operating activities for the three months ended September 27, 2025, was $312.1 million, compared to $270.1 million in the prior year, representing an increase of 15.6% [52]. - The adjusted free cash flow (non-GAAP) for the three months ended September 27, 2025, was $268.7 million, up from $219.4 million in the same period of 2024, indicating a growth of 22.5% [52]. Shareholder Returns and Investments - The company returned $670 million to shareholders through share repurchases and dividends in the first three quarters of 2025, repurchasing 2.5 million shares at a cost of $454 million [10]. - The company completed the acquisition of Meridian Adhesives Group's U.S.-based flooring adhesives business for $390 million, projected to generate annual revenue of $110 million in 2025 [13]. Balance Sheet and Debt - Net debt to adjusted EBITDA (non-GAAP) was 2.2x at the end of Q3 2025, indicating a strong balance sheet [11]. - Total current assets rose to $3,523.7 million as of September 27, 2025, compared to $3,084.7 million in the previous year, marking an increase of 14.2% [31]. - Total liabilities decreased to $6,655.9 million as of September 27, 2025, from $6,991.0 million a year earlier, reflecting a reduction of 4.8% [32]. - Long-term debt and finance leases increased to $3,202.3 million as of September 27, 2025, from $2,042.1 million a year earlier, indicating a rise of 56.7% [32]. - Total debt stood at $3,781.1 million, with net debt at $3,244.8 million as of the latest reporting period [58]. Guidance and Expectations - The company expects Q4 2025 reported EPS guidance to be between $2.15 and $2.25, with adjusted EPS guidance of $2.35 to $2.45 [6][16]. - The effective tax rate for Q3 2025 was reported at 29.2%, with an adjusted tax rate (non-GAAP) of 26.5% [14].

Core Insights - Avery Dennison reported quarterly earnings of $2.37 per share, exceeding the Zacks Consensus Estimate of $2.32 per share, and showing a slight increase from $2.33 per share a year ago, resulting in an earnings surprise of +2.16% [1][2] - The company generated revenues of $2.22 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.03% and reflecting a year-over-year increase from $2.18 billion [2] - The stock has underperformed, losing approximately 12.6% year-to-date compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.42, with projected revenues of $2.25 billion, and for the current fiscal year, the EPS estimate is $9.47 on revenues of $8.83 billion [7] - The estimate revisions trend for Avery Dennison was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Containers - Paper and Packaging industry, to which Avery Dennison belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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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 third quarter ended September 27, 2025. 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 a solid third quarter, with earnings ab. ...

Wall Street analysts expect Avery Dennison (AVY) to post quarterly earnings of $2.32 per share in its upcoming report, which indicates a year-over-year decline of 0.4%. Revenues are expected to be $2.21 billion, up 1.4% from the year-ago quarter.The current level reflects a downward revision of 1.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a compan ...

Core Insights - Avery Dennison Corporation (AVY) is set to report its third-quarter 2025 results on October 22, 2025, with expected revenues of $2.22 billion, reflecting a 1.5% increase year-over-year, while earnings per share (EPS) is estimated at $2.32, indicating a 0.4% decline from the previous year [1][7]. Financial Performance - The Zacks Consensus Estimate for AVY's third-quarter revenues is $2.22 billion, which is a 1.5% rise from the year-ago figure [1]. - The consensus estimate for AVY's earnings has decreased over the past 60 days, now pegged at $2.32 per share, showing a year-over-year dip of 0.4% [1][7]. - Avery Dennison's earnings have beaten the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 0.4% [3][4]. Segment Performance - The Materials Group segment is expected to see revenues rise by 1.1% year-over-year to $1.51 billion, driven by growth in the base business and specialty labels, although adjusted operating profit is projected to fall by 1.4% to $219 million [10]. - The Solutions Group segment's revenues are estimated at $695 million, reflecting a 1.4% increase from the prior year, with operating profit expected to decrease by 4.4% to $74 million [11][12]. Market Context - Avery Dennison's stock has declined by 25.4% over the past year, compared to a 34.6% decline in the industry [13].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Avery Dennison despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $2.32 per share, reflecting a -0.4% change year-over-year, while revenues are projected to be $2.22 billion, an increase of 1.5% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.55% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Avery Dennison is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.39%, suggesting a bearish outlook [12]. - The stock currently holds a Zacks Rank of 3, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Avery Dennison exceeded expectations with earnings of $2.42 per share against an expected $2.38, achieving a surprise of +1.68% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [15]. - Stocks expected to beat earnings expectations generally have a higher chance of success, making it important to consider Earnings ESP and Zacks Rank before earnings releases [16].

Company Overview - Avery Dennison Corporation (AVY) is valued at a market cap of $12.7 billion and is based in Mentor, Ohio, specializing in materials science and digital identification solutions, including pressure-sensitive materials, packaging, labeling, RFID tags, apparel branding, and medical adhesives [1] Earnings Expectations - The company is scheduled to announce its fiscal Q3 earnings for 2025 on October 22, with analysts expecting a profit of $2.34 per share, a slight increase from $2.33 per share in the same quarter last year [2] - For fiscal 2025, analysts project AVY to report a profit of $9.50 per share, up from $9.43 per share in fiscal 2024, with an expected EPS growth of 9.5% year-over-year to $10.40 in fiscal 2026 [3] Recent Performance - AVY's shares have declined 24.9% over the past 52 weeks, underperforming the S&P 500 Index's 17.6% rise and the Consumer Discretionary Select Sector SPDR Fund's 21% increase during the same period [4] - Following a mixed Q2 earnings release, shares of AVY rose 1.5%, but the company's revenue fell slightly year-over-year to $2.2 billion, missing consensus estimates due to trade policy changes and weaker demand in apparel and retail [5] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for AVY, with five out of 13 analysts recommending "Strong Buy," one suggesting "Moderate Buy," and seven advising "Hold." The mean price target for AVY is $198.33, indicating a potential upside of 21.9% from current levels [6]

Core Viewpoint - Avery Dennison Corporation will host its third quarter 2025 earnings conference call on October 22, 2025, at 11:00 a.m. ET, with the earnings release scheduled for 6:45 a.m. ET on the same day [1] Group 1 - The earnings conference call will be webcast live, and a replay will be available on the company's Investor Relations website [1]

Group 1 - Avery Dennison Corporation (NYSE: AVY) has seen its shares decline approximately 10% year to date, underperforming the broader market [1] - The company is positioned as a leader in the labeling industry, with expectations for a better future that have yet to materialize [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [2] - It clarifies that no specific investment recommendations are provided, and opinions expressed may not reflect the views of the broader platform [2] - The analysts contributing to the article may not be licensed or certified, indicating a diverse range of perspectives [2]