Anticipated Financial Update: A Look into Avery Dennison's Upcoming Financial Report
Avery Dennison Corporation, a leading global materials science and digital identification solutions company based in Mentor, Ohio, is set to announce its fiscal second-quarter earnings for 2025 on Tuesday, July 22. Analysts predict that the company will report earnings per share (EPS) of $2.39, a slight decrease of 1.2% compared to the same quarter last year.
The company's performance over the past year has underperformed the S&P 500's 13.6% rise and the Consumer Discretionary Select Sector SPDR Fund's 19.2% uptick over the same period. However, despite this, AVY's shares have shown resilience, with organic sales increasing by 2.3% driven by strong growth in its Solutions segment.
The increase in EPS was supported by margin expansion and disciplined cost control at AVY. Despite a negative free cash flow of $53 million due to working capital shifts, the company returned $331 million to shareholders.
On Apr. 23, AVY reported its first-quarter earnings, with Adjusted EPS coming in at $2.30, up 0.4% from the prior year. Revenue for the quarter was $2.15 billion, a marginal decrease year over year.
Looking ahead, analysts expect Avery Dennison Corporation's EPS to rise 9.2% year over year to $10.44 in fiscal 2026. The consensus opinion on AVY stock is "Moderate Buy" overall, with an average analyst price target of $196.85, indicating a potential upside of 12.2% from the current levels.
Investors will be closely watching AVY's second-quarter earnings report for insights into the company's strategy for navigating the current economic environment and its prospects for future growth. Following the earnings report, AVY's shares dropped 2.6%, indicating a cautious market response.
With a market cap of $13.7 billion, Avery Dennison Corporation continues to be a significant player in the branding and information solutions industry, providing pressure-sensitive materials, RFID inlays, tickets, tags, labels, and other converted products. The company's focus on innovation, sustainability, and customer-centric solutions positions it well for the future, despite the challenges posed by the current market conditions.
Investors will be interested in Avery Dennison Corporation's business strategy for future growth, as they navigate the current economic environment, given the moderate buy consensus opinion on AVY stock by analysts. Analysts also anticipate an increase in the company's finance sector performance, with a predicted rise of 9.2% year over year in EPS to $10.44 in fiscal 2026.
