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Avery Dennison (AVY) Q2 Earnings: What's In Store?
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Avery Dennison Corporation (AVY - Free Report) is slated to report second-quarter 2016 results on Jul 26, before the market opens.
Earnings Whispers
Our proven model does not conclusively show that Avery Dennison is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Avery Dennison is 0.99%. This is because the Most Accurate estimate of $1.02 is higher than the Zacks Consensus Estimate of $1.01.
Zacks Rank: Avery Dennison carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
Avery Dennison anticipates a slowdown of the pace of growth for The Pressure-Sensitive Materials unit as witnessed in 2015, mainly due to the loss of large customer programs in the personal care sector of the performance tapes business. Changes to customer's technology resulted in the decision to bring this program to a close. The program loss is likely to largely affect the second half of the year. Sales in the total performance tapes business will, thus, decline on an organic basis in 2016.
Demand in China has remained weak in the past few quarters and demand in Europe also continued to be soft, reflecting economic challenges in the regions.
Nevertheless, the company remains focused on boosting profitable growth through differentiated quality, service and innovation. Avery Dennison specifically targets to accelerate growth in high-value market segments, such as tapes, graphics, RFID and emerging markets. It will continue to invest both organically and through bolt-on acquisitions.
Surprise History
In the last quarter, the company delivered a positive earnings surprise of 9.30%. The company has outperformed the Zack Consensus Estimate in the last four quarters with an average positive earnings surprise of 6.61%. Let’s see how things are shaping up for this announcement.
Here are some stocks you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Allegion Plc (ALLE - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2.
Ingersoll-Rand Plc (IR - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2.
Reliance Steel & Aluminum Co. (RS - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Avery Dennison (AVY) Q2 Earnings: What's In Store?
Avery Dennison Corporation (AVY - Free Report) is slated to report second-quarter 2016 results on Jul 26, before the market opens.
Earnings Whispers
Our proven model does not conclusively show that Avery Dennison is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Avery Dennison is 0.99%. This is because the Most Accurate estimate of $1.02 is higher than the Zacks Consensus Estimate of $1.01.
Zacks Rank: Avery Dennison carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
Avery Dennison anticipates a slowdown of the pace of growth for The Pressure-Sensitive Materials unit as witnessed in 2015, mainly due to the loss of large customer programs in the personal care sector of the performance tapes business. Changes to customer's technology resulted in the decision to bring this program to a close. The program loss is likely to largely affect the second half of the year. Sales in the total performance tapes business will, thus, decline on an organic basis in 2016.
Demand in China has remained weak in the past few quarters and demand in Europe also continued to be soft, reflecting economic challenges in the regions.
Nevertheless, the company remains focused on boosting profitable growth through differentiated quality, service and innovation. Avery Dennison specifically targets to accelerate growth in high-value market segments, such as tapes, graphics, RFID and emerging markets. It will continue to invest both organically and through bolt-on acquisitions.
Surprise History
In the last quarter, the company delivered a positive earnings surprise of 9.30%. The company has outperformed the Zack Consensus Estimate in the last four quarters with an average positive earnings surprise of 6.61%. Let’s see how things are shaping up for this announcement.
AVERY DENNISON Price and EPS Surprise
AVERY DENNISON Price and EPS Surprise | AVERY DENNISON Quote
Stocks to Consider
Here are some stocks you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Allegion Plc (ALLE - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2.
Ingersoll-Rand Plc (IR - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2.
Reliance Steel & Aluminum Co. (RS - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>