Avery Dennison (NYSE:AVY) Posts Earnings Results, Beats Expectations By $0.10 EPS

Avery Dennison (NYSE:AVY) posted its earnings results on Thursday. The industrial products company reported $2.42 earnings per share for the quarter, topping analysts’ consensus estimates of $2.32 by $0.10, FiscalAI reports. The firm had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.26 billion. Avery Dennison had a net margin of 7.62% and a return on equity of 34.60%. The business’s quarterly revenue was up 5.2% on a year-over-year basis. During the same period in the previous year, the firm posted $2.37 EPS.

Here are the key takeaways from Avery Dennison’s conference call:

• Positive Sentiment: Avery Dennison reported solid third-quarter execution, with organic sales up 4%, adjusted EPS of $2.42 (up 2%), and $246 million of adjusted free cash flow. Excluding an estimated destocking impact, management characterized underlying organic sales growth at approximately 6% and EPS growth at approximately 8%.
• Positive Sentiment: The company slightly raised the midpoint of its full-year adjusted EPS outlook to $10.10–$10.24, representing roughly 7% year-over-year growth, and now expects more than 100% free-cash-flow conversion. Restructuring savings are expected to exceed $65 million, while the company continues returning capital through dividends and share repurchases.
• Negative Sentiment: Customer inventory destocking remains a headwind, particularly in European materials markets, and management expects most remaining pre-buy inventory to unwind by the end of the fourth quarter. Materials Group margins declined roughly one point year over year as price pass-through, wage inflation, and incentive compensation costs outweighed productivity gains.
• Neutral Sentiment: Intelligent Labels growth was mixed: apparel and general retail rose about 10% and food adoption continued to build, but logistics sales fell by double digits due to share normalization and softer demand. The rollout of a major retailer’s fresh-food RFID program has shifted into 2027, although management remains confident in double-digit longer-term Intelligent Labels growth.
• Positive Sentiment: Solutions Group profitability improved meaningfully, with adjusted EBITDA margins expanding 80 basis points to 17.8%, supported by strong productivity and restructuring efforts. Management also cited continued share gains in Materials and secular demand tied to sustainability regulations and higher-value filmic products.

Avery Dennison Trading Down 1.2%

Avery Dennison stock traded down $2.13 during trading hours on Friday, hitting $179.93. The company had a trading volume of 129,603 shares, compared to its average volume of 739,005. The firm has a market cap of $13.64 billion, a P/E ratio of 19.70, a P/E/G ratio of 2.17 and a beta of 0.79. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.79 and a current ratio of 1.13. Avery Dennison has a 1 year low of $152.42 and a 1 year high of $199.54. The company has a 50-day moving average price of $174.25 and a two-hundred day moving average price of $172.31.

Avery Dennison Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 16th. Investors of record on Wednesday, December 2nd will be issued a dividend of $1.00 per share. The ex-dividend date is Wednesday, December 2nd. This represents a $4.00 dividend on an annualized basis and a yield of 2.2%. Avery Dennison’s dividend payout ratio (DPR) is presently 43.81%.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. UBS Group lifted their price target on Avery Dennison from $218.00 to $225.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Bank of America restated a “buy” rating on shares of Avery Dennison in a research report on Friday, August 14th. Weiss Ratings upgraded Avery Dennison from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Jefferies Financial Group reissued a “hold” rating and set a $181.00 target price on shares of Avery Dennison in a research report on Monday, September 28th. Finally, Truist Financial decreased their price target on Avery Dennison from $209.00 to $208.00 and set a “buy” rating on the stock in a report on Monday, October 12th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $199.10.

Insider Buying and Selling

In related news, SVP Nicholas Colisto sold 3,886 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $170.68, for a total value of $663,262.48. Following the transaction, the senior vice president owned 7,126 shares of the company’s stock, valued at $1,216,265.68. This represents a 35.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Ignacio Walker sold 1,742 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $171.61, for a total value of $298,944.62. Following the transaction, the senior vice president owned 7,585 shares in the company, valued at $1,301,661.85. The trade was a 18.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.81% of the company’s stock.

Trending Headlines about Avery Dennison

Here are the key news stories impacting Avery Dennison this week:

• Positive Sentiment: Quarterly results exceeded expectations: Adjusted earnings of $2.42 per share beat the $2.32 consensus estimate, while revenue rose 5.2% year over year to $2.33 billion, above expectations of approximately $2.26 billion. Avery Dennison Q3 earnings report
• Positive Sentiment: Productivity and pricing supported profitability: Management attributed the earnings beat to productivity gains and pricing actions. Destocking trends also appear to be easing, which could improve demand visibility for Avery Dennison’s labeling and materials businesses. Avery Dennison Earnings Beat Estimates in Q3
• Positive Sentiment: Full-year guidance was maintained: Avery Dennison kept its reported 2026 EPS outlook at $9.45-$9.59, reducing the risk of a near-term guidance-driven selloff. The company also returned $481 million to shareholders through dividends and repurchases during the first nine months. Avery Dennison 2026 Earnings Guidance
• Neutral Sentiment: Performance was uneven across segments: Materials Group sales increased 8.5% to $1.64 billion, but Solutions Group sales declined 1.8% to $687 million. Reported net income increased 2.0% to $169.7 million, and GAAP diluted EPS was $2.24 versus $2.13 a year earlier. Avery Dennison Third-Quarter Sales and EPS
• Negative Sentiment: Investors still face execution risks: Management cited margin pressure and continued customer destocking as factors shaping the 2026 outlook. Separately, disclosed insider activity showed two sales and no purchases over the past six months, a modestly negative sentiment signal. Avery Dennison Q3 Earnings Call Transcript

Avery Dennison Company Profile

Avery Dennison Corporation (NYSE: AVY) is a global materials science and manufacturing company that develops and produces labeling, packaging, graphic, and functional materials. Its products are used by businesses across industries including consumer goods, retail, logistics, apparel, automotive, healthcare, and industrial manufacturing.

The company’s offerings include pressure-sensitive labels and label materials, adhesives, industrial and specialty tapes, graphic films, and packaging materials.