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Avery Dennison Q2 Earnings Beat Estimates, Revenues Dip Y/Y

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Key Takeaways

  • AVY reported Q2 adjusted EPS of $2.42, topping estimates but flat with the prior-year quarter.
  • Revenues fell 0.7% y/y to $2.22B, missing estimates due to declines in organic sales.
  • The Materials Group posted a 1% organic sales drop. Solutions Group saw a 0.8% decline.

Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.42 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.38. The bottom line was flat year over year.

Including one-time items, the company has reported earnings per share (EPS) of $2.41, up from $2.18 in the year-ago quarter.

Avery Dennison Corporation Price, Consensus and EPS Surprise

 

Avery Dennison Corporation Price, Consensus and EPS Surprise

Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote

Avery Dennison’s Revenues & Gross Profit Dip Y/Y in Q2

Total revenues dipped 0.7% year over year to $2.22 billion, marginally missing the Zacks Consensus Estimate of $2.23 billion.

Cost of sales in the quarter grew 0.6% year over year to $1.58 billion. The gross profit fell 3.6% year over year to $639 million.

Marketing, general and administrative expenses were $352 million compared with the $374 million incurred in the year-ago quarter. The adjusted operating profit was around $287 million compared with the prior-year quarter’s $289 million. The adjusted operating margin was 12.9% in the quarter, flat compared with the year-ago quarter.

AVY’s Q2 Segmental Highlights

Revenues in the Materials Group segment increased 0.2% year over year to $1.55 billion in the second quarter. The reported figure exceeded our estimate of $1.54 billion. On an organic basis, sales decreased 1%. We predicted organic sales to rise 2.3%. The segment’s adjusted operating profit dipped 0.8% year over year to $242.5 million.

Revenues in the Solutions Group were down 2.6% year over year to $670 million. We estimated revenues of $659 million for this segment. On an organic basis, sales fell 0.8%. Our model predicted a rise of 1.1%. The segment’s adjusted operating income decreased 4% year over year to $67 million.

Avery Dennison’s Cash & Debt Position

AVY returned $503 million in cash to its shareholders through share repurchases and dividend payments in the first half of 2025. The company repurchased 2 million shares throughout the first half.

Avery Dennison ended the quarter with cash and cash equivalents of $216 million compared with $209 million at the second quarter 2024 end. The company’s long-term debt was $2.63 billion at the end of the quarter under review, up from $2.05 billion at the end of the second quarter of 2024.

AVY realized approximately $30 million in pre-tax savings from restructuring (net of transition costs) in the first six months of 2025.

AVY’s Guidance for Q3

The company expects adjusted EPS between $2.24 and $2.40 for third-quarter 2025.

Avery Dennison Stock’s Price Performance

AVY shares have lost 18.7% in the past year compared with the industry’s 6.1% decline.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

AVY’s Zacks Rank

Avery Dennison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Industrial Product Stocks Awaiting Results

Ball Corporation (BALL - Free Report) is scheduled to release its second-quarter 2025 results on Aug. 5. The Zacks Consensus Estimate for BALL’s second-quarter 2025 earnings is pegged at 87 cents per share, suggesting year-over-year growth of 17.6%.

The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.15 billion, suggesting growth of 6.6% from the prior-year figure. Ball Corp has a trailing four-quarter average surprise of 4.9%.

Silgan Holdings Inc. (SLGN - Free Report) is scheduled to release its second-quarter 2025 results on July 30. The Zacks Consensus Estimate for SLGN’s second-quarter 2025 earnings is pegged at $1.03 per share, indicating a year-over-year rise of 17%.

The Zacks Consensus Estimate for Silgan Holdings’ top line is pegged at $1.53 billion, suggesting an increase of 11.1% from the prior-year figure. Silgan Holdings has a trailing four-quarter average surprise of 2.1%.

AptarGroup, Inc. (ATR - Free Report) is scheduled to release its second-quarter 2025 results on July 31. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2025 earnings is pegged at $1.58 per share, suggesting year-over-year growth of 15.3%.

The Zacks Consensus Estimate for the company’s top line is pegged at $946.1 million, suggesting growth of 3.9% from the prior-year figure. ATR has a trailing four-quarter average surprise of 7.3%.

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