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

Avery Dennison (NYSE:AVY) issued its quarterly earnings results on Thursday. The industrial products company reported $2.89 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.42, FiscalAI reports. Avery Dennison had a net margin of 7.66% and a return on equity of 33.69%. The company had revenue of $2.46 billion for the quarter, compared to the consensus estimate of $2.30 billion. During the same quarter in the prior year, the company earned $2.42 EPS. Avery Dennison’s quarterly revenue was up 10.9% on a year-over-year basis. 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 Price Performance

Shares of Avery Dennison stock traded up $8.90 during trading hours on Thursday, reaching $176.04. The stock had a trading volume of 1,045,983 shares, compared to its average volume of 684,656. The stock’s 50 day moving average is $160.14 and its 200 day moving average is $171.33. The firm has a market capitalization of $13.47 billion, a PE ratio of 19.91, a PEG ratio of 3.01 and a beta of 0.82. 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 1.15, a quick ratio of 0.80 and a debt-to-equity ratio of 1.38.

Avery Dennison Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd will be issued a $1.00 dividend. The ex-dividend date of this dividend is Wednesday, September 2nd. This represents a $4.00 dividend on an annualized basis and a yield of 2.3%. Avery Dennison’s payout ratio is presently 45.10%.

Hedge Funds Weigh In On Avery Dennison

Several institutional investors and hedge funds have recently modified their holdings of AVY. Wealthspire Advisors LLC increased its position in shares of Avery Dennison by 32.7% in the fourth quarter. Wealthspire Advisors LLC now owns 2,425 shares of the industrial products company’s stock valued at $441,000 after buying an additional 598 shares in the last quarter. United Capital Financial Advisors LLC lifted its position in shares of Avery Dennison by 8.1% during the 3rd quarter. United Capital Financial Advisors LLC now owns 2,420 shares of the industrial products company’s stock valued at $392,000 after buying an additional 182 shares in the last quarter. Lido Advisors LLC lifted its position in shares of Avery Dennison by 13.4% during the 3rd quarter. Lido Advisors LLC now owns 2,375 shares of the industrial products company’s stock valued at $385,000 after buying an additional 281 shares in the last quarter. UMB Bank n.a. grew its stake in Avery Dennison by 86.4% in the 4th quarter. UMB Bank n.a. now owns 1,670 shares of the industrial products company’s stock valued at $304,000 after acquiring an additional 774 shares during the period. Finally, First Citizens Bank & Trust Co. purchased a new stake in Avery Dennison in the 4th quarter worth $260,000. Hedge funds and other institutional investors own 94.17% of the company’s stock.

Analyst Ratings Changes

A number of research firms have recently weighed in on AVY. Raymond James Financial set a $192.00 price objective on shares of Avery Dennison in a research note on Tuesday, April 21st. JPMorgan Chase & Co. decreased their target price on shares of Avery Dennison from $205.00 to $185.00 and set an “overweight” rating for the company in a research report on Wednesday, April 29th. Weiss Ratings downgraded Avery Dennison from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, June 8th. Citigroup reduced their price objective on Avery Dennison from $185.00 to $184.00 and set a “neutral” rating for the company in a research note on Thursday, July 9th. Finally, Bank of America boosted their price objective on Avery Dennison from $202.00 to $210.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $200.11.

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.