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Avery Dennison (AVY) to Post Q2 Earnings: What's in Store?
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Avery Dennison Corporation (AVY - Free Report) is scheduled to report second-quarter 2020 results before the opening bell on Jul 27.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total sales is pegged at $1.51 billion, suggesting a decline of 15.8% from the prior-year quarter. The estimate for the company’s earnings per share is pegged at $1.12, indicating a decline of 35% from the year-ago reported figure. Notably, the estimate has remains unchanged over the past 30 days.
Q1 Performance
In the last reported quarter, Avery Dennison’s earnings improved on a year-over-year basis despite decline in revenues. Both revenues and earnings beat the respective Zacks Consensus Estimate. The company outpaced estimates in each of the trailing four quarters, the average surprise being 4.95%.
The overall slowdown in the U.S manufacturing sector primarily due to the coronavirus pandemic might have thwarted demand for its products.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials (IHM) segment’s quarterly sales is pegged at $125 million, suggesting a year-on-year fall of 27%. The segment’s operating income is estimated to plunge year over year to $4 million.
The company’s Label and Packaging Materials business serves essential categories that have been experiencing higher demand amid the coronavirus pandemic. It witnessed growth in high-value categories and volume improvement in first-quarter 2020. The company’s operations in Europe and North America may have witnessed a significant surge in demand late in the quarter to be reported driven by food, hygiene, and pharmaceutical product labeling, and variable information labeling related to e-commerce. These factors are likely to have contributed to the segment’s second-quarter results. However, low demand in the Graphics Solutions business might have negated these gains.
The Zacks Consensus Estimate for the Label and Graphic Materials (LGM) segment’s second-quarter sales is currently pegged at $1,136 million, suggesting a year-over-year decline of 6%. The Zacks Consensus Estimate for the segment’s operating income stands at $149 million, indicating year-over-year decline of 8%.
The company’s Retail Branding and Information Solutions business, which primarily serves apparel markets, has been witnessing significant decline in demand in the second quarter, reflecting widespread retail store and apparel manufacturing closures. This is likely to get reflected in the to-be-reported quarter’s results.
The Zacks Consensus Estimate for the Retail Branding and Information Solutions segment’s second-quarter sales is pegged at $259 million, suggesting a decline of 38% from the prior-year quarter's $418 million. The Zacks Consensus Estimate for the segment’s operating income stands pegged at $2 million, indicating a plunge of 96% from the year-ago reported figure.
Nevertheless, the company is likely to have benefited from acquisitions and growth in high-value product categories during the April-June period. Further, Avery Dennison’s cost-reduction initiatives and restructuring activities might have boosted savings, in turn, driving the bottom line during this period.
Earnings Whispers
Our proven model predicts an earnings beat for Avery Dennison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Avery Dennison is +3.39%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 3.
Share Price Performance
Avery Dennison’s shares have gained 7.3% in the past year against the industry’s decline of 17.0%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.
Lincoln Electric Holdings, Inc. (LECO - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +5.50%.
W.W. Grainger, Inc. (GWW - Free Report) has a Zacks Rank #3 and an Earnings ESP of +13.76%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Avery Dennison (AVY) to Post Q2 Earnings: What's in Store?
Avery Dennison Corporation (AVY - Free Report) is scheduled to report second-quarter 2020 results before the opening bell on Jul 27.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total sales is pegged at $1.51 billion, suggesting a decline of 15.8% from the prior-year quarter. The estimate for the company’s earnings per share is pegged at $1.12, indicating a decline of 35% from the year-ago reported figure. Notably, the estimate has remains unchanged over the past 30 days.
Q1 Performance
In the last reported quarter, Avery Dennison’s earnings improved on a year-over-year basis despite decline in revenues. Both revenues and earnings beat the respective Zacks Consensus Estimate. The company outpaced estimates in each of the trailing four quarters, the average surprise being 4.95%.
Avery Dennison Corporation Price and EPS Surprise
Avery Dennison Corporation price-eps-surprise | Avery Dennison Corporation Quote
Factors to Note
The overall slowdown in the U.S manufacturing sector primarily due to the coronavirus pandemic might have thwarted demand for its products.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials (IHM) segment’s quarterly sales is pegged at $125 million, suggesting a year-on-year fall of 27%. The segment’s operating income is estimated to plunge year over year to $4 million.
The company’s Label and Packaging Materials business serves essential categories that have been experiencing higher demand amid the coronavirus pandemic. It witnessed growth in high-value categories and volume improvement in first-quarter 2020. The company’s operations in Europe and North America may have witnessed a significant surge in demand late in the quarter to be reported driven by food, hygiene, and pharmaceutical product labeling, and variable information labeling related to e-commerce. These factors are likely to have contributed to the segment’s second-quarter results. However, low demand in the Graphics Solutions business might have negated these gains.
The Zacks Consensus Estimate for the Label and Graphic Materials (LGM) segment’s second-quarter sales is currently pegged at $1,136 million, suggesting a year-over-year decline of 6%. The Zacks Consensus Estimate for the segment’s operating income stands at $149 million, indicating year-over-year decline of 8%.
The company’s Retail Branding and Information Solutions business, which primarily serves apparel markets, has been witnessing significant decline in demand in the second quarter, reflecting widespread retail store and apparel manufacturing closures. This is likely to get reflected in the to-be-reported quarter’s results.
The Zacks Consensus Estimate for the Retail Branding and Information Solutions segment’s second-quarter sales is pegged at $259 million, suggesting a decline of 38% from the prior-year quarter's $418 million. The Zacks Consensus Estimate for the segment’s operating income stands pegged at $2 million, indicating a plunge of 96% from the year-ago reported figure.
Nevertheless, the company is likely to have benefited from acquisitions and growth in high-value product categories during the April-June period. Further, Avery Dennison’s cost-reduction initiatives and restructuring activities might have boosted savings, in turn, driving the bottom line during this period.
Earnings Whispers
Our proven model predicts an earnings beat for Avery Dennison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Avery Dennison is +3.39%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 3.
Share Price Performance
Avery Dennison’s shares have gained 7.3% in the past year against the industry’s decline of 17.0%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks, which you may consider as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lincoln Electric Holdings, Inc. (LECO - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +5.50%.
W.W. Grainger, Inc. (GWW - Free Report) has a Zacks Rank #3 and an Earnings ESP of +13.76%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>