Avery Dennison (NYSE:AVY) Posts Earnings Results

Avery Dennison (NYSE:AVY) posted its quarterly earnings results on Thursday. The industrial products company reported $2.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.47 by $0.42, FiscalAI reports. The business had revenue of $2.46 billion during the quarter, compared to analysts’ expectations of $2.30 billion. Avery Dennison had a net margin of 7.66% and a return on equity of 33.69%. The business’s quarterly revenue was up 10.9% on a year-over-year basis. During the same quarter last year, the company posted $2.42 earnings per share. 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 Stock Up 4.4%

AVY stock opened at $174.55 on Friday. Avery Dennison has a 52 week low of $152.42 and a 52 week high of $199.54. The company has a quick ratio of 0.80, a current ratio of 1.15 and a debt-to-equity ratio of 1.38. The firm has a 50-day simple moving average of $160.45 and a 200-day simple moving average of $171.23. The stock has a market capitalization of $13.35 billion, a P/E ratio of 19.68, a P/E/G ratio of 2.97 and a beta of 0.82.

Avery Dennison Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd will be given a $1.00 dividend. The ex-dividend date is Wednesday, September 2nd. This represents a $4.00 annualized dividend and a dividend yield of 2.3%. Avery Dennison’s dividend payout ratio (DPR) is 45.10%.

Hedge Funds Weigh In On Avery Dennison

A number of hedge funds have recently made changes to their positions in the company. Measured Wealth Private Client Group LLC purchased a new stake in shares of Avery Dennison during the third quarter worth approximately $36,000. CYBER HORNET ETFs LLC acquired a new stake in Avery Dennison during the 2nd quarter worth $37,000. MUFG Securities EMEA plc purchased a new stake in shares of Avery Dennison during the second quarter worth $41,000. Los Angeles Capital Management LLC acquired a new stake in shares of Avery Dennison in the fourth quarter valued at about $65,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Avery Dennison by 164.6% in the second quarter. EverSource Wealth Advisors LLC now owns 389 shares of the industrial products company’s stock worth $68,000 after buying an additional 242 shares in the last quarter. Institutional investors and hedge funds own 94.17% of the company’s stock.

Analyst Upgrades and Downgrades

AVY has been the subject of a number of research reports. Raymond James Financial set a $192.00 target price on Avery Dennison in a report on Tuesday, April 21st. Citigroup reissued a “neutral” rating on shares of Avery Dennison in a research report on Friday. Truist Financial decreased their price objective on shares of Avery Dennison from $221.00 to $209.00 and set a “buy” rating for the company in a research note on Wednesday, July 15th. JPMorgan Chase & Co. reduced their price target on Avery Dennison from $205.00 to $185.00 and set an “overweight” rating for the company in a research report on Wednesday, April 29th. Finally, Bank of America boosted their price target 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 assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $200.11.

Trending Headlines about Avery Dennison

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

• Positive Sentiment: Q2 results exceeded expectations. Adjusted earnings were $2.89 per share, versus the $2.47 analyst consensus, while revenue rose 10.9% year over year to $2.46 billion, above estimates of $2.30 billion. Earnings also increased from $2.42 per share in the prior-year quarter. Avery Dennison Announces Second Quarter 2026 Results
• Positive Sentiment: Pricing and productivity supported margins. Management credited pricing actions, productivity gains and volume growth for the strong quarter, suggesting the company is offsetting cost pressures while benefiting from resilient demand. Avery Dennison Q2 Earnings Beat on Pricing and Productivity Gains
• Positive Sentiment: Materials Group growth was particularly strong. Segment sales increased 15.9% to approximately $1.80 billion, more than offsetting a slight decline in Solutions Group sales. The company also returned $347 million to shareholders through dividends and share repurchases during the first half of 2026.
• Positive Sentiment: The outlook remains supportive. Avery Dennison issued updated third-quarter guidance and reported full-year 2026 reported EPS guidance of $9.40 to $9.70, reinforcing confidence following the quarterly beat. Avery Dennison Delivers Impressive Q2 CY2026
• Neutral Sentiment: Management cautioned that customer destocking could weigh on demand during the second half, creating a potential near-term headwind despite the strong quarter. Avery Dennison Q2 2026 Earnings Call Transcript
• Negative Sentiment: Reported insider activity has been weighted toward selling, with no insider purchases and multiple sales disclosed over the past six months. This is a secondary concern compared with the earnings results but may temper investor sentiment.

Avery Dennison Company Profile

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.