Avery Dennison (NYSE:AVY) Announces Quarterly Earnings Results, Beats Estimates By $0.42 EPS

Key Points

• Avery Dennison beat quarterly expectations: EPS was $2.89, exceeding estimates by $0.42, while revenue reached $2.46 billion and rose 10.9% year over year. Organic sales grew 8%, and adjusted EBITDA margin expanded to 17.1%.
• Management reinstated 2026 guidance for 3%-4% organic sales growth and adjusted EPS of $10.00-$10.30, but warned that customer inventory pre-buys boosted second-quarter growth and should largely reverse in the third quarter.
• Shares gained 5.3%: Avery Dennison also highlighted growth opportunities in Intelligent Labels, declared a $1.00 quarterly dividend, and returned more than $210 million to shareholders through dividends and buybacks during the quarter.

Avery Dennison (NYSE:AVY - Get Free Report) issued its quarterly earnings data on Thursday. The industrial products company reported $2.89 EPS for the quarter, topping analysts' consensus estimates of $2.47 by $0.42, FiscalAI reports. The company had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.30 billion. Avery Dennison had a net margin of 7.66% and a return on equity of 33.69%. Avery Dennison's revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.42 earnings per share. Avery Dennison updated its Q3 2026 guidance to 10.000-10.300 EPS.

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

• Strong second-quarter performance: Organic sales grew 8%, adjusted EPS increased 19% to $2.89, adjusted EBITDA margin expanded 50 basis points to 17.1%, and free cash flow reached $365 million.
• Materials Group organic sales rose approximately 10%, while Solutions Group sales grew 3%; productivity, pricing actions, and operational execution drove margin expansion in both segments despite inflation and higher employee costs.
• Customer inventory pre-buys contributed roughly half of second-quarter organic growth and about $0.25 of EPS, with management expecting most of the benefit to unwind in the third quarter and a smaller carryover into the fourth quarter.
• Management sees accelerating opportunities for Intelligent Labels, particularly in apparel, general retail, and food; a major U.S. grocer rollout is expected to contribute in the second half, while additional pilots are expected to support growth in 2027 and beyond.
• Avery Dennison reinstated full-year 2026 guidance for 3%-4% organic sales growth and adjusted EPS of $10.00-$10.30, while returning more than $210 million to shareholders in the quarter through dividends and share repurchases.

Avery Dennison Stock Up 5.3%

Shares of AVY stock traded up $8.90 during trading hours on Thursday, reaching $176.04. 1,045,983 shares of the company's stock were exchanged, compared to its average volume of 684,656. Avery Dennison has a 1 year low of $152.42 and a 1 year high of $199.54. The company has a current ratio of 1.15, a quick ratio of 0.80 and a debt-to-equity ratio of 1.38. The stock has a market cap of $13.47 billion, a PE ratio of 19.91, a PEG ratio of 3.01 and a beta of 0.82. The stock's fifty day moving average price is $160.14 and its two-hundred day moving average price is $171.33.

Avery Dennison Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd will be paid a dividend of $1.00 per share. The ex-dividend date is Wednesday, September 2nd. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.3%. Avery Dennison's payout ratio is presently 45.10%.

Institutional Trading of Avery Dennison

Several large investors have recently bought and sold shares of the stock. Measured Wealth Private Client Group LLC purchased a new position in shares of Avery Dennison in the third quarter worth $36,000. CYBER HORNET ETFs LLC acquired a new position in shares of Avery Dennison in the 2nd quarter valued at $37,000. MUFG Securities EMEA plc acquired a new position in shares of Avery Dennison in the 2nd quarter valued at $41,000. Los Angeles Capital Management LLC purchased a new position in Avery Dennison in the 4th quarter worth $65,000. Finally, EverSource Wealth Advisors LLC lifted its position in Avery Dennison by 164.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 389 shares of the industrial products company's stock worth $68,000 after acquiring an additional 242 shares during the period. Hedge funds and other institutional investors own 94.17% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Truist Financial cut their price target on Avery Dennison from $221.00 to $209.00 and set a "buy" rating on the stock in a report on Wednesday, July 15th. Citigroup dropped their price objective on Avery Dennison from $185.00 to $184.00 and set a "neutral" rating on the stock in a research report on Thursday, July 9th. Weiss Ratings downgraded shares of Avery Dennison from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, June 8th. Bank of America increased their price target on shares of Avery Dennison from $202.00 to $210.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Avery Dennison from $205.00 to $185.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Avery Dennison has a consensus rating of "Moderate Buy" and an average target price of $200.11.

Avery Dennison Company Profile

Avery Dennison NYSE: AVY is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison's offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.

The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.

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