Zacks Research Expects Reduced Earnings for Avery Dennison

Key Points

• Zacks Research cut Avery Dennison’s Q3 2026 EPS estimate to $2.31 from $2.52, while projecting FY2026 EPS of $10.17 versus the $10.13 consensus estimate.
• Avery Dennison recently reported a quarterly earnings beat, posting $2.89 EPS and $2.46 billion in revenue, with revenue up 10.9% year over year.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $201.22. The company also declared a quarterly dividend of $1.00, representing a 2.2% annualized yield.

Avery Dennison Corporation (NYSE:AVY - Free Report) - Equities research analysts at Zacks Research reduced their Q3 2026 earnings per share (EPS) estimates for shares of Avery Dennison in a report issued on Wednesday, August 12th. Zacks Research analyst Team now forecasts that the industrial products company will earn $2.31 per share for the quarter, down from their prior forecast of $2.52. The consensus estimate for Avery Dennison's current full-year earnings is $10.13 per share. Zacks Research also issued estimates for Avery Dennison's Q4 2026 earnings at $2.50 EPS, FY2026 earnings at $10.17 EPS, Q1 2027 earnings at $2.69 EPS, Q2 2027 earnings at $2.93 EPS, Q3 2027 earnings at $2.68 EPS, Q4 2027 earnings at $2.75 EPS, FY2027 earnings at $11.06 EPS, Q1 2028 earnings at $2.96 EPS, Q2 2028 earnings at $3.08 EPS and FY2028 earnings at $11.95 EPS.

A number of other equities analysts have also commented on AVY. Argus set a $175.00 price objective on shares of Avery Dennison in a report on Thursday, June 4th. UBS Group raised their target price on Avery Dennison from $218.00 to $225.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Bank of America boosted their price target on Avery Dennison from $202.00 to $210.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Raymond James Financial set a $192.00 price target on Avery Dennison in a report on Tuesday, April 21st. Finally, Truist Financial lowered their price objective on Avery Dennison from $221.00 to $209.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $201.22.

Avery Dennison Price Performance

AVY opened at $180.70 on Thursday. The company has a fifty day simple moving average of $163.47 and a 200 day simple moving average of $170.50. The firm has a market cap of $13.70 billion, a price-to-earnings ratio of 19.79, a PEG ratio of 3.12 and a beta of 0.81. Avery Dennison has a twelve month low of $152.42 and a twelve month high of $199.54. The company has a current ratio of 1.13, a quick ratio of 0.79 and a debt-to-equity ratio of 1.37.

Avery Dennison (NYSE:AVY - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The industrial products company reported $2.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.42. 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 7.62% and a return on equity of 34.60%. Avery Dennison's revenue for the quarter was up 10.9% on a year-over-year basis. During the same quarter last year, the company earned $2.42 earnings per share. Avery Dennison has set its Q3 2026 guidance at 10.000-10.300 EPS.

Avery Dennison Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd will be given a $1.00 dividend. The ex-dividend date of this dividend is Wednesday, September 2nd. This represents a $4.00 annualized dividend and a dividend yield of 2.2%. Avery Dennison's payout ratio is presently 43.81%.

Insider Activity

In other news, SVP Ignacio J. Walker sold 1,742 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $171.61, for a total transaction of $298,944.62. Following the transaction, the senior vice president owned 7,585 shares of the company's stock, valued at approximately $1,301,661.85. This trade represents a 18.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of AVY. BlackRock Inc. acquired a new stake in shares of Avery Dennison during the second quarter worth $1,052,464,000. Norges Bank acquired a new position in shares of Avery Dennison in the 4th quarter valued at about $188,438,000. Morgan Stanley grew its position in shares of Avery Dennison by 20.1% during the 4th quarter. Morgan Stanley now owns 3,869,889 shares of the industrial products company's stock valued at $703,856,000 after buying an additional 647,795 shares during the last quarter. Wellington Management Group LLP raised its stake in Avery Dennison by 12.5% during the third quarter. Wellington Management Group LLP now owns 5,808,960 shares of the industrial products company's stock worth $942,039,000 after acquiring an additional 644,664 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in Avery Dennison in the second quarter worth about $101,896,000. Institutional investors own 94.17% of the company's stock.

Avery Dennison News Summary

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

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $10.17 from $10.03, above the current consensus estimate of $10.13. The firm also increased FY2027 EPS to $11.06 from $10.92 and FY2028 EPS to $11.95 from $11.88, pointing to stronger longer-term earnings expectations.
• Positive Sentiment: Additional upward revisions included Q2 2027 EPS to $2.93 from $2.70, Q1 2027 EPS to $2.69 from $2.68, Q1 2028 EPS to $2.96 from $2.93, and Q2 2028 EPS to $3.08 from $2.97. These changes support the view that Avery Dennison can sustain earnings growth beyond the current year.
• Neutral Sentiment: A recent Zacks article highlighted Avery Dennison as a potential growth stock based on its Style Scores, but it did not announce a new contract, product, or change in company guidance. Here's Why Avery Dennison is a Strong Growth Stock
• Negative Sentiment: Zacks cut its Q3 2026 EPS forecast sharply to $2.31 from $2.52 and reduced Q4 2026 EPS to $2.50 from $2.56. The revisions imply softer near-term earnings momentum.
• Negative Sentiment: Later-period quarterly estimates were also trimmed: Q3 2027 EPS fell to $2.68 from $2.72 and Q4 2027 EPS declined to $2.75 from $2.81. These reductions partially offset the more optimistic full-year forecasts.

About Avery Dennison

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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