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Avery Dennison (AVY) to Report Q4 Earnings: What's in Store?
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Avery Dennison Corporation (AVY - Free Report) is scheduled to report fourth-quarter 2020 results before the opening bell on Feb 3.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total sales is pegged at $1.93 billion, suggesting an improvement of 8.9% from the prior-year quarter. The consensus mark for the company’s earnings per share stands at $2.17, indicating growth of 25% from the year-ago reported figure. Notably, the estimate has gone up 2% over the past 30 days.
Q3 Performance
In the last reported quarter, Avery Dennison reported year-over-year improvement in its bottom line despite a decline in its top line aided by the company’s cost saving actions. However, both revenues and earnings beat the respective Zacks Consensus Estimate.
Avery Dennison has an impressive earnings surprise history. It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 12.8%.
Avery Dennison’s fourth-quarter overall sales are anticipated to reflect the impact of weak demand amid the pandemic. Nevertheless, the company is likely to have benefited from acquisitions and growth in high-value product categories during the October-December period.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials (IHM) segment’s quarterly sales is pegged at $165 million, suggesting a year-over-year decline of 3%. The overall weakness in the U.S manufacturing sector primarily due to the coronavirus pandemic might have limited demand for the segment’s products in the quarter to be reported.
The Zacks Consensus Estimate for the Label and Graphic Materials (LGM) segment’s fourth-quarter sales is currently pegged at $1,235 million, suggesting a year-over-year improvement of 5%. The segment’s Label and Packaging Materials business serves essential categories that have been experiencing higher demand amid the coronavirus pandemic. However, the demand has moderated recently. Nevertheless, volume improvement and focus on high-value categories led by specialty labels might have favored the segment’s sales in the quarter under review. However, low demand in the Graphics Solutions business may have negated some these gains.
The Zacks Consensus Estimate for the Retail Branding and Information Solutions segment’s fourth-quarter sales is pegged at $472 million, suggesting growth of 11% from the prior-year quarter's figure of $427 million. Continued strength in Radio-frequency identification (RFID) including the benefit of the Smartrac acquisition and external embellishments is expected to have boosted the segment’s sales in fourth-quarter. However, lower demand for apparel thanks to widespread retail store and apparel manufacturing closures amid the pandemic might have acted as a dampener.
Avery Dennison has been executing various long-term productivity and temporary cost saving actions during the pandemic. This is likely to have boosted margins and earnings in the quarter under review. Reflecting the impact of savings from these initiatives, the IHM segment’s operating income is expected to improve 55% year over year to $19 million. The Zacks Consensus Estimate for the LGM segment’s operating income stands at $191 million, suggesting a year-over-year jump of 35%. The Zacks Consensus Estimate for the RBIS segment’s operating income stands at $66 million, indicating an increase of 34% from the year-ago reported figure.
Share Price Performance
Avery Dennison’s shares have gained 12.6% in the past year against the industry’s decline of 7.4%.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 but that is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -0.97%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 2.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Product stocks, which you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Sealed Air Corporation (SEE - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +2.90%.
Altra Industrial Motion Corp. has a Zacks Rank #2 and an Earnings ESP of +0.48%, at present.
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Avery Dennison (AVY) to Report Q4 Earnings: What's in Store?
Avery Dennison Corporation (AVY - Free Report) is scheduled to report fourth-quarter 2020 results before the opening bell on Feb 3.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter total sales is pegged at $1.93 billion, suggesting an improvement of 8.9% from the prior-year quarter. The consensus mark for the company’s earnings per share stands at $2.17, indicating growth of 25% from the year-ago reported figure. Notably, the estimate has gone up 2% over the past 30 days.
Q3 Performance
In the last reported quarter, Avery Dennison reported year-over-year improvement in its bottom line despite a decline in its top line aided by the company’s cost saving actions. However, both revenues and earnings beat the respective Zacks Consensus Estimate.
Avery Dennison has an impressive earnings surprise history. It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 12.8%.
Avery Dennison Corporation Price and EPS Surprise
Avery Dennison Corporation price-eps-surprise | Avery Dennison Corporation Quote
Factors to Note
Avery Dennison’s fourth-quarter overall sales are anticipated to reflect the impact of weak demand amid the pandemic. Nevertheless, the company is likely to have benefited from acquisitions and growth in high-value product categories during the October-December period.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials (IHM) segment’s quarterly sales is pegged at $165 million, suggesting a year-over-year decline of 3%. The overall weakness in the U.S manufacturing sector primarily due to the coronavirus pandemic might have limited demand for the segment’s products in the quarter to be reported.
The Zacks Consensus Estimate for the Label and Graphic Materials (LGM) segment’s fourth-quarter sales is currently pegged at $1,235 million, suggesting a year-over-year improvement of 5%. The segment’s Label and Packaging Materials business serves essential categories that have been experiencing higher demand amid the coronavirus pandemic. However, the demand has moderated recently. Nevertheless, volume improvement and focus on high-value categories led by specialty labels might have favored the segment’s sales in the quarter under review. However, low demand in the Graphics Solutions business may have negated some these gains.
The Zacks Consensus Estimate for the Retail Branding and Information Solutions segment’s fourth-quarter sales is pegged at $472 million, suggesting growth of 11% from the prior-year quarter's figure of $427 million. Continued strength in Radio-frequency identification (RFID) including the benefit of the Smartrac acquisition and external embellishments is expected to have boosted the segment’s sales in fourth-quarter. However, lower demand for apparel thanks to widespread retail store and apparel manufacturing closures amid the pandemic might have acted as a dampener.
Avery Dennison has been executing various long-term productivity and temporary cost saving actions during the pandemic. This is likely to have boosted margins and earnings in the quarter under review. Reflecting the impact of savings from these initiatives, the IHM segment’s operating income is expected to improve 55% year over year to $19 million. The Zacks Consensus Estimate for the LGM segment’s operating income stands at $191 million, suggesting a year-over-year jump of 35%. The Zacks Consensus Estimate for the RBIS segment’s operating income stands at $66 million, indicating an increase of 34% from the year-ago reported figure.
Share Price Performance
Avery Dennison’s shares have gained 12.6% in the past year against the industry’s decline of 7.4%.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 but that is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -0.97%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 2.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Product stocks, which you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +3.34% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sealed Air Corporation (SEE - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +2.90%.
Altra Industrial Motion Corp. has a Zacks Rank #2 and an Earnings ESP of +0.48%, at present.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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