Earnings Preview: Avery Dennison (AVY) Q2 Earnings Expected to Decline

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Avery Dennison (AVY) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Avery Dennison is expected to report quarterly earnings of $2.38 per share, reflecting a -1.7% change year-over-year, with revenues projected at $2.23 billion, down 0.2% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.25% over the last 30 days, indicating a collective 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 -0.42%, suggesting a bearish outlook from analysts [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 was expected to post earnings of $2.32 per share but delivered $2.30, resulting in a surprise of -0.86% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Avery Dennison does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making decisions regarding the stock ahead of the earnings release [17].