Avery Dennison (NYSE:AVY – Get Free Report) announced its earnings results on Thursday. The industrial products company reported $2.89 EPS for the quarter, beating the consensus estimate of $2.47 by $0.42, FiscalAI reports. Avery Dennison had a net margin of 7.66% and a return on equity of 33.69%. The company had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.30 billion. During the same quarter in the prior year, the company posted $2.42 earnings per share. The firm’s revenue for the quarter was up 10.9% on a year-over-year basis. 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 Performance
AVY traded up $8.43 on Thursday, hitting $175.57. The company’s stock had a trading volume of 1,144,192 shares, compared to its average volume of 685,238. Avery Dennison has a 12 month low of $152.42 and a 12 month high of $199.54. The firm has a market cap of $13.43 billion, a P/E ratio of 19.84, a price-to-earnings-growth ratio of 3.01 and a beta of 0.82. 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 company’s 50 day simple moving average is $160.14 and its 200-day simple moving average is $171.33.
Avery Dennison Announces Dividend
Wall Street Analysts Forecast Growth
Several equities analysts have recently issued reports on AVY shares. Citigroup reduced their target price on Avery Dennison from $185.00 to $184.00 and set a “neutral” rating for the company in a report on Thursday, July 9th. Weiss Ratings lowered Avery Dennison from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, June 8th. Argus set a $175.00 target price on Avery Dennison in a research note on Thursday, June 4th. UBS Group reduced their target price on shares of Avery Dennison from $226.00 to $222.00 and set a “buy” rating for the company in a research report on Friday, April 10th. Finally, Raymond James Financial set a $192.00 price target on shares of Avery Dennison in a research note on Tuesday, April 21st. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, Avery Dennison presently has an average rating of “Moderate Buy” and an average target price of $200.11.
Check Out Our Latest Analysis on AVY
Hedge Funds Weigh In On Avery Dennison
Large investors have recently made changes to their positions in the stock. Resources Management Corp CT ADV raised its stake in shares of Avery Dennison by 0.8% during the 2nd quarter. Resources Management Corp CT ADV now owns 7,800 shares of the industrial products company’s stock valued at $1,369,000 after purchasing an additional 62 shares during the period. Nomura Holdings Inc. grew its holdings in Avery Dennison by 3.7% during the 2nd quarter. Nomura Holdings Inc. now owns 2,634 shares of the industrial products company’s stock valued at $462,000 after buying an additional 93 shares in the last quarter. Beacon Pointe Advisors LLC increased its position in shares of Avery Dennison by 6.3% during the fourth quarter. Beacon Pointe Advisors LLC now owns 1,789 shares of the industrial products company’s stock valued at $325,000 after buying an additional 106 shares during the period. Orion Porfolio Solutions LLC lifted its holdings in shares of Avery Dennison by 1.8% in the second quarter. Orion Porfolio Solutions LLC now owns 6,150 shares of the industrial products company’s stock worth $1,079,000 after buying an additional 107 shares in the last quarter. Finally, Janus Henderson Group PLC grew its stake in Avery Dennison by 1.7% during the fourth quarter. Janus Henderson Group PLC now owns 9,117 shares of the industrial products company’s stock valued at $1,659,000 after acquiring an additional 152 shares in the last quarter. 94.17% of the stock is owned by institutional investors.
About Avery Dennison
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.
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