Avery Dennison (AVY) Surpasses Q3 Earnings and Revenue Estimates

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]