Avery Dennison (NYSE:AVY) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Avery Dennison (NYSE:AVY) announced its quarterly earnings data on Thursday. The industrial products company reported $2.42 EPS for the quarter, beating the consensus estimate of $2.32 by $0.10, FiscalAI reports. The firm had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.26 billion. Avery Dennison had a net margin of 7.62% and a return on equity of 34.60%. Avery Dennison’s revenue was up 5.2% on a year-over-year basis. During the same period last 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 Up 0.8%

Avery Dennison stock traded up $1.37 during mid-day trading on Thursday, hitting $182.07. The company’s stock had a trading volume of 809,426 shares, compared to its average volume of 740,283. The firm has a market capitalization of $13.80 billion, a PE ratio of 19.94, a price-to-earnings-growth ratio of 2.19 and a beta of 0.79. 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 1.13, a quick ratio of 0.79 and a debt-to-equity ratio of 1.37. The stock’s fifty day moving average is $174.27 and its two-hundred day moving average is $172.34.

Avery Dennison Dividend Announcement

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

Insider Transactions at Avery Dennison

In other news, SVP Nicholas Colisto sold 3,886 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $170.68, for a total value of $663,262.48. Following the transaction, the senior vice president directly owned 7,126 shares in the company, valued at approximately $1,216,265.68. This represents a 35.29% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 of the company’s stock, valued at approximately $1,301,661.85. This represents a 18.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.81% of the company’s stock.

Avery Dennison News Summary

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

• Positive Sentiment: Q3 results exceeded expectations: Avery Dennison reported adjusted earnings of $2.42 per share, ahead of the $2.32 consensus estimate, while revenue rose 5.2% year over year to $2.33 billion, surpassing forecasts of approximately $2.26 billion. Avery Dennison Q3 earnings report
• Positive Sentiment: Productivity and pricing supported results: Management’s productivity initiatives and pricing actions helped drive the earnings beat. Materials Group sales increased 8.5%, and the company indicated that customer destocking is easing, potentially supporting demand recovery. Avery Dennison earnings beat estimates
• Positive Sentiment: Shareholder returns remain substantial: Avery Dennison returned $481 million through dividends and share repurchases during the first nine months of 2026. Analysts’ consensus target price of $199.10 also implies potential additional upside from recent trading levels. Avery Dennison consensus target price
• Neutral Sentiment: 2026 guidance was maintained: The company kept its full-year reported EPS outlook at $9.45 to $9.59, providing stability but not a clear upward revision following the quarterly beat. Avery Dennison third-quarter sales and guidance
• Negative Sentiment: Margins and destocking remain risks: Solutions Group sales declined 1.8%, and analysts noted margin pressure and lingering customer inventory reductions in the 2026 outlook. These factors could restrain earnings growth even as revenue improves. Avery Dennison productivity and outlook analysis

Analysts Set New Price Targets

AVY has been the topic of a number of recent research reports. Jefferies Financial Group restated a “hold” rating and issued a $181.00 target price on shares of Avery Dennison in a research note on Monday, September 28th. JPMorgan Chase & Co. upped their price objective on Avery Dennison from $185.00 to $190.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Truist Financial cut their target price on shares of Avery Dennison from $209.00 to $208.00 and set a “buy” rating for the company in a report on Monday, October 12th. Bank of America reaffirmed a “buy” rating on shares of Avery Dennison in a report on Friday, August 14th. Finally, UBS Group increased their price target on shares of Avery Dennison from $218.00 to $225.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Six investment analysts have rated the stock with a Buy rating and three 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 price target of $199.10.

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.