Core Insights - Avery Dennison Corporation reported preliminary, unaudited results for Q3 2025, indicating a solid performance with earnings above expectations [1] Financial Performance - The company provided non-GAAP financial measures, which are reconciled from GAAP in the attached financial schedules [1] - Comparisons are made to the same period in the prior year, highlighting year-over-year performance [1]

Core Insights - Analysts expect Avery Dennison (AVY) to report quarterly earnings of $2.32 per share, reflecting a year-over-year decline of 0.4% [1] - Revenue projections stand at $2.21 billion, indicating a 1.4% increase from the previous year [1] - There has been a downward revision of 1.1% in the consensus EPS estimate over the past 30 days, suggesting a reappraisal by analysts [1][2] Revenue Estimates - The 'Net Sales- Solutions Group' is projected to reach $697.13 million, representing a year-over-year increase of 1.7% [4] - The 'Net Sales- Materials Group' is expected to be $1.53 billion, indicating a 1.9% increase compared to the prior year [4] Operating Income Estimates - 'Adjusted Operating income (loss)- Solutions Group' is estimated at $71.95 million, down from $77.40 million in the same quarter last year [5] - 'Adjusted Operating income (loss)- Materials Group' is projected to be $223.68 million, slightly up from $222.20 million reported in the previous year [5] Stock Performance - Avery Dennison shares have decreased by 1.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [5] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [5]

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]

Company Overview - Avery Dennison Corporation, based in Mentor, Ohio, operates as a packaging company providing pressure-sensitive materials and various converted products, with a market cap of $12.9 billion [1][2] Stock Performance - The stock has declined 26.4% from its 52-week high of $224.38 reached on September 27, 2024, and has underperformed the Consumer Discretionary Select Sector SPDR Fund (XLY), which surged 14.3% over the same period [3] - Year-to-date, AVY stock has decreased by 11.8%, and over the past 52 weeks, it has dropped 21.2%, while XLY has increased by 7.2% and 24.8% respectively [4] - The stock has remained mostly below its 50-day and 200-day moving averages over the past year, indicating a bearish trend [4] Recent Financial Results - Following the release of mixed Q2 results on July 22, AVY stock prices gained 1.5%, but demand from apparel and general retail categories remained under pressure due to current tariff policies, leading to net sales of $2.2 billion, down 66 basis points year-over-year, missing expectations [5] - The adjusted EPS remained flat at $2.42, surpassing consensus estimates by 1.7% [6] Analyst Ratings - Among 13 analysts covering AVY stock, the consensus rating is a "Moderate Buy," with a mean price target of $199.50, suggesting a 20.9% upside potential from current price levels [7]

Core Insights - Avery Dennison is an $8.8 billion business focused on material science and digital identification [2] - The company aims to address branding and information challenges, particularly in supply chain efficiency, waste reduction, and labor optimization [2] Business Overview - The company's portfolio consists of two main segments: materials and solutions, with materials accounting for approximately 70% and solutions for about 30% [3] - The primary focus is on enhancing customer experiences by connecting brands with consumers and promoting circularity [2][3]

Summary of Avery Dennison (AVY) 2025 Conference Call Company Overview - Avery Dennison is an $8.8 billion business focused on material science and digital identification [5][6] - The business is divided into two main segments: Materials (70% of portfolio) and Solutions (30% of portfolio) [6][8] - Approximately 60% of the business is anchored in Consumer Staples, which is less cyclical [6] Core Business Insights - The company aims for GDP plus growth and top quartile returns, focusing on value creation through cycles [8] - High value categories are identified as key growth catalysts, typically growing at GDP plus 2-2.5x with strong margins [7][13] - Significant exposure to emerging markets is expected to drive growth beyond Western or North American GDP [7] Growth Strategy - Anticipated growth of 4.5% to 5% in the next cycle, with contributions from base businesses, Intelligent Labels, and other high value categories [14] - The company maintains a strong balance sheet with a leverage ratio in the low 2s, allowing for strategic acquisitions and share buybacks [15][16] Recent Acquisition - Avery Dennison announced a small acquisition in the Adhesives space, specifically a flooring adhesives business, which has been growing at mid-single digits with high margins [17][22] - The acquisition is expected to leverage existing adhesive manufacturing capabilities and generate synergies [23][30] Apparel Market Challenges - The apparel market has faced challenges due to tariff uncertainties, leading to a decline in volumes [35][36] - The company is focusing on optimizing its Intelligent Labels business to adapt to these market conditions [38][39] Intelligent Labels Business - More than 60% of the Intelligent Labels business is anchored in apparel, which has been affected by market conditions [38] - The company is exploring growth opportunities in Food and Logistics segments, which have significant potential for adoption [41][42] Innovation and Competitive Advantage - Avery Dennison emphasizes innovation as a key driver for maintaining market leadership, with ongoing developments in RFID technology and digital identity solutions [53][55] - The company has developed a cloud platform, Atma.io, to manage digital identities and track supply chain events, enhancing its competitive edge [74][75] Other High Value Categories - Vescom and Imbellix are highlighted as strong performers, with growth potential in the retail and performance sports sectors [61][64] - The company is also optimistic about its specialty and durable label business, which is expected to grow mid-single digits [69] Pricing Power and Market Adaptation - Avery Dennison has successfully implemented pricing surcharges to manage inflationary pressures and tariff impacts [57][58] - The company leverages its global scale to adapt sourcing routes and manage costs effectively [58][60] Conclusion - Avery Dennison is well-positioned to navigate current market challenges through strategic acquisitions, innovation, and a focus on high value categories, while maintaining a disciplined approach to capital allocation and pricing strategies [16][17][57]