Avery Dennison Earnings Preview

Avery Dennison AVY is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Avery Dennison to report an earnings per share (EPS) of $2.33.

Anticipation surrounds Avery Dennison's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.16, leading to a 2.62% drop in the share price the following trading session.

Here's a look at Avery Dennison's past performance and the resulting price change:

Avery Dennison Share Price Analysis

Shares of Avery Dennison were trading at $215.41 as of October 21. Over the last 52-week period, shares are up 25.93%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Avery Dennison

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Avery Dennison.

The consensus rating for Avery Dennison is Outperform, derived from 7 analyst ratings. An average one-year price target of $248.43 implies a potential 15.33% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of International Paper, Packaging Corp of America and Graphic Packaging Holding, three key industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for International Paper, with an average 1-year price target of $52.5, implying a potential 75.63% downside.
• For Packaging Corp of America, analysts project an Buy trajectory, with an average 1-year price target of $226.4, indicating a potential 5.1% upside.
• The consensus among analysts is an Outperform trajectory for Graphic Packaging Holding, with an average 1-year price target of $33.0, indicating a potential 84.68% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for International Paper, Packaging Corp of America and Graphic Packaging Holding, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Avery Dennison ranks highest in Revenue Growth among its peers. It also leads in Gross Profit. However, it has the lowest Return on Equity. Overall, Avery Dennison is positioned at the top in terms of Revenue Growth and Gross Profit, but falls to the bottom in Return on Equity compared to its peers.

Delving into Avery Dennison's Background

Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.

Avery Dennison: Financial Performance Dissected

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Avery Dennison's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.93%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Avery Dennison's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 7.91%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 7.87%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 2.14%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Avery Dennison's debt-to-equity ratio is below the industry average at 1.41, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Avery Dennison visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.