Earnings Preview: Avery Dennison (AVY) Q3 Earnings Expected to Decline

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].