Avery Dennison (AVY) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Avery Dennison (AVY) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Avery Dennison is expected to report quarterly earnings of $2.40 per share, reflecting a year-over-year increase of +0.8% [3]. - Revenues are projected to be $2.29 billion, which is a 4.9% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.16% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Avery Dennison is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.46% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Avery Dennison's current Zacks Rank is 3, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Avery Dennison exceeded the expected earnings of $2.32 per share by delivering $2.37, resulting in a surprise of +2.16% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement, making it essential to consider other elements beyond just earnings results [15][17].