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Avery Dennison (AVY) to Report Q3 Earnings: What's in Store?
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Avery Dennison Corporation (AVY - Free Report) is scheduled to report third-quarter 2022 results before the opening bell on Oct 26.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter total sales is pegged at $2.32 billion, suggesting an improvement of 12% from the prior-year quarter. The consensus mark for the company’s earnings per share is pinned at $2.51, indicating a year-over-year increase of 17.3%. The estimate has been moved down 0.4% in the past 7 days.
Q2 Performance
Avery Dennison’s revenues and earnings improved year over year in second-quarter 2022 and beat the Zacks Consensus Estimate. The company has a trailing four-quarter earnings surprise of 5.7%, on average.
Avery Dennison is witnessing solid demand for the labeling of non-durable consumer goods like food, beverage, home and personal care products. This is likely to get reflected in the company’s third-quarter sales, as around 40% of its revenues come from these products.
The Zacks Consensus Estimate for the Label and Graphic Materials segment’s third-quarter sales is currently pegged at $1,478 million, calling for a year-over-year increase of 10%. Strong demand for consumer-packaged goods and ongoing e-commerce trends are likely to have aided the business during the quarter.
Volume improvement, focus on high-value categories led by specialty labels, contributions from productivity and pricing initiatives are anticipated to have buoyed the segment’s results during the quarter under review. The Zacks Consensus Estimate for the segment’s adjusted operating income is pegged at $207 million, suggesting year-over-year growth of 12%.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials segment’s quarterly sales is pinned at $201 million, indicating an increase of 3% from the prior-year quarter’s $195 million. The ongoing strong demand in healthcare categories is likely to have aided the segment in the quarter to be reported. The Zacks Consensus Estimate for the segment’s operating income is $21 million, indicating 10% year-over-year growth.
The Zacks Consensus Estimate for the Retail Branding and Information Solutions segment’s July-September quarter’s sales is pegged at $657 million, calling for an increase of 23.7% from the prior-year quarter's figure of $531 million.
Consistent strength in Radio-frequency identification, strong growth in Intelligent Labels business and high-value categories as well as robust growth in external embellishments are likely to have boosted the segment’s third-quarter sales. Apart from apparel, the segment is recording growth in new applications within food, logistics and home goods. The Zacks Consensus Estimate for the segment’s operating income is currently at $99 million, indicating 36% growth from the prior-year quarter’s reported figure of $73 million.
Avery Dennison is executing several pricing and re-engineering actions to mitigate inflationary cost pressure. It has also announced additional price increases in most of its businesses worldwide. These are likely to have supported the company’s margins during the quarter under discussion. Supply-chain-related challenges, unfavorable impacts of foreign currency translation as well as rising raw material, labor and freight costs might have offset these benefits during the third quarter.
What the Zacks Model Indicates
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 before they're reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -1.26%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 4 (Sell).
Avery Dennison’s shares have lost 18% in the past year compared with the industry’s decline of 17%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
The Timken Company (TKR - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings has moved up 2% in the past 60 days to $1.33 per share. The estimate suggests growth of 12.7% from the year-ago reported figure. TKR has a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for TKR’s quarterly revenues is pegged at $1.09 billion, indicating an increase of 5% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
O-I Glass Inc. (OI - Free Report) currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 3% in the past 60 days and is currently pegged at 61 cents per share. The projection indicates 5.2% growth from the year-ago reported figure.
The Zacks Consensus Estimate for OI’s quarterly revenues is pegged at $1.71 billion, which indicates an improvement of 6.27% from the year-ago reported figure. OI has a trailing four-quarter earnings surprise of 17.4%, on average.
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Avery Dennison (AVY) to Report Q3 Earnings: What's in Store?
Avery Dennison Corporation (AVY - Free Report) is scheduled to report third-quarter 2022 results before the opening bell on Oct 26.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter total sales is pegged at $2.32 billion, suggesting an improvement of 12% from the prior-year quarter. The consensus mark for the company’s earnings per share is pinned at $2.51, indicating a year-over-year increase of 17.3%. The estimate has been moved down 0.4% in the past 7 days.
Q2 Performance
Avery Dennison’s revenues and earnings improved year over year in second-quarter 2022 and beat the Zacks Consensus Estimate. The company has a trailing four-quarter earnings surprise of 5.7%, on average.
Avery Dennison Corporation Price and EPS Surprise
Avery Dennison Corporation price-eps-surprise | Avery Dennison Corporation Quote
Factors at Play
Avery Dennison is witnessing solid demand for the labeling of non-durable consumer goods like food, beverage, home and personal care products. This is likely to get reflected in the company’s third-quarter sales, as around 40% of its revenues come from these products.
The Zacks Consensus Estimate for the Label and Graphic Materials segment’s third-quarter sales is currently pegged at $1,478 million, calling for a year-over-year increase of 10%. Strong demand for consumer-packaged goods and ongoing e-commerce trends are likely to have aided the business during the quarter.
Volume improvement, focus on high-value categories led by specialty labels, contributions from productivity and pricing initiatives are anticipated to have buoyed the segment’s results during the quarter under review. The Zacks Consensus Estimate for the segment’s adjusted operating income is pegged at $207 million, suggesting year-over-year growth of 12%.
The Zacks Consensus Estimate for the Industrial and Healthcare Materials segment’s quarterly sales is pinned at $201 million, indicating an increase of 3% from the prior-year quarter’s $195 million. The ongoing strong demand in healthcare categories is likely to have aided the segment in the quarter to be reported. The Zacks Consensus Estimate for the segment’s operating income is $21 million, indicating 10% year-over-year growth.
The Zacks Consensus Estimate for the Retail Branding and Information Solutions segment’s July-September quarter’s sales is pegged at $657 million, calling for an increase of 23.7% from the prior-year quarter's figure of $531 million.
Consistent strength in Radio-frequency identification, strong growth in Intelligent Labels business and high-value categories as well as robust growth in external embellishments are likely to have boosted the segment’s third-quarter sales. Apart from apparel, the segment is recording growth in new applications within food, logistics and home goods. The Zacks Consensus Estimate for the segment’s operating income is currently at $99 million, indicating 36% growth from the prior-year quarter’s reported figure of $73 million.
Avery Dennison is executing several pricing and re-engineering actions to mitigate inflationary cost pressure. It has also announced additional price increases in most of its businesses worldwide. These are likely to have supported the company’s margins during the quarter under discussion. Supply-chain-related challenges, unfavorable impacts of foreign currency translation as well as rising raw material, labor and freight costs might have offset these benefits during the third quarter.
What the Zacks Model Indicates
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 before they're reported with our Earnings ESP Filter.
Earnings ESP: Avery Dennison has an Earnings ESP of -1.26%.
Zacks Rank: Avery Dennison currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Avery Dennison’s shares have lost 18% in the past year compared with the industry’s decline of 17%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
The Timken Company (TKR - Free Report) currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings has moved up 2% in the past 60 days to $1.33 per share. The estimate suggests growth of 12.7% from the year-ago reported figure. TKR has a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for TKR’s quarterly revenues is pegged at $1.09 billion, indicating an increase of 5% from the prior-year quarter’s levels.
Mueller Water Products (MWA - Free Report) currently has an Earnings ESP of +17.65% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
O-I Glass Inc. (OI - Free Report) currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 3% in the past 60 days and is currently pegged at 61 cents per share. The projection indicates 5.2% growth from the year-ago reported figure.
The Zacks Consensus Estimate for OI’s quarterly revenues is pegged at $1.71 billion, which indicates an improvement of 6.27% from the year-ago reported figure. OI has a trailing four-quarter earnings surprise of 17.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.