Kritika Sarmah
2 min read
Avery Dennison Corporation (AVY), headquartered in Mentor, Ohio, is a leading global materials science and digital identification solutions company. Valued at $13.7 billion by market cap, the company provides a wide range of branding and information solutions. Its products and solutions include pressure-sensitive materials, radio frequency identification (RFID) inlays, tickets, tags, labels, and other converted products. The company is all set to announce its fiscal second-quarter earnings for 2025 before the market opens on Tuesday, July 22.
Ahead of the event, analysts expect AVY to report a profit of $2.39 per share on a diluted basis, down 1.2% from $2.42 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarterly reports, while missing on the recent quarter.
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For the current year, analysts expect AVY to report EPS of $9.56, up 1.4% from $9.43 in fiscal 2024. Its EPS is expected to rise 9.2% year over year to $10.44 in fiscal 2026.
AVY shares are down 19.8% over the past year, underperforming the S&P 500’s ($SPX) 13.6% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.2% uptick over the same time frame.
On Apr. 23, AVY reported its first-quarter earnings, and its shares dropped 2.6%. It reported revenue of $2.15 billion, down marginally year over year, with organic sales up 2.3% driven by strong growth in its Solutions segment. Adjusted EPS came in at $2.30, up 0.4% from the prior year, supported by margin expansion and disciplined cost control. Despite a negative free cash flow of $53 million due to working capital shifts, the company returned $331 million to shareholders. Avery guided Q2 adjusted EPS between $2.30 and $2.50, signaling resilience amid macroeconomic headwinds.
Analysts’ consensus opinion on AVY stock is fairly bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, six advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and six give a “Hold.” AVY’s average analyst price target is $196.85, indicating a potential upside of 12.2% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
