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

Avery Dennison (NYSE:AVY) announced its quarterly earnings data on Thursday. The industrial products company reported $2.42 earnings per share for the quarter, topping analysts’ consensus estimates of $2.32 by $0.10, FiscalAI reports. The company 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%. The firm’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period in the previous year, the business earned $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 Stock Performance

Avery Dennison stock traded up $1.52 during mid-day trading on Thursday, reaching $182.22. 738,620 shares of the stock traded hands, compared to its average volume of 740,080. Avery Dennison has a 12-month low of $152.42 and a 12-month high of $199.54. The business’s 50-day moving average is $174.27 and its 200-day moving average is $172.34. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.13 and a quick ratio of 0.79. The stock has a market capitalization of $13.81 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 2.19 and a beta of 0.79.

Avery Dennison Dividend Announcement

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

Wall Street Analyst Weigh In

AVY has been the topic of a number of research analyst reports. JPMorgan Chase & Co. upped their price target on Avery Dennison from $185.00 to $190.00 and gave the company an “overweight” rating in a report on Friday, July 31st. Bank of America reiterated a “buy” rating on shares of Avery Dennison in a report on Friday, August 14th. UBS Group upped their target price on shares of Avery Dennison from $218.00 to $225.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Weiss Ratings upgraded shares of Avery Dennison from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, Truist Financial decreased their price objective 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. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $199.10.

Key Avery Dennison News

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

Insider Activity

In other news, SVP Nicholas Colisto sold 3,886 shares of the 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 owned 7,126 shares in the company, valued at $1,216,265.68. This represents a 35.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Ignacio Walker sold 1,742 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $171.61, for a total transaction of $298,944.62. Following the completion of the transaction, the senior vice president directly owned 7,585 shares in the company, valued at approximately $1,301,661.85. The trade was a 18.68% decrease in their position. The SEC filing for this sale provides additional information. 0.81% of the stock is owned by corporate insiders.

About Avery Dennison

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.