Back to top

Image: Bigstock

Avery Dennison to Report Q3 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Key Takeaways

  • Avery Dennison will announce 3Q25 results before market open on Oct. 22.
  • Estimates indicate $2.22B in revenues, up 1.5% y/y, and an EPS of $2.32, down 0.4%.
  • Higher input costs may weigh on margins despite stronger volumes and cost-saving efforts.

Avery Dennison Corporation (AVY - Free Report) is scheduled to report third-quarter 2025 results before the opening bell on Oct. 22, 2025.

The Zacks Consensus Estimate for AVY’s third-quarter revenues is pegged at $2.22 billion, indicating a 1.5% rise from the year-ago reported figure.

The consensus estimate for AVY’s earnings has moved down in the past 60 days. The consensus estimate is pegged at $2.32 per share, indicating a year-over-year dip of 0.4%.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

AVY’s Earnings Surprise History

Avery Dennison’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 0.4%.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

What the Zacks Model Unveils for Avery Dennison

Our proven model does not conclusively predict an earnings beat for AVY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Avery Dennison has an Earnings ESP of -0.39%.

Zacks Rank: AVY currently carries a Zacks Rank #3.

Factors Likely to Have Shaped AVY’s Q3 Performance

Avery Dennison’s third-quarter results are likely to have reflected improved volumes in both its segments. However, higher raw material, labor and freight costs are expected to have impacted the company’s margins. The impacts are anticipated to have been offset by AVY’s productivity improvement and cost-saving actions.

Our model predicts the Materials Group segment’s revenues to rise 1.1% year over year in the quarter to $1.51 billion. The upside will be driven by growth in the base business and high-value categories led by specialty labels. Our estimate for the Materials Group segment’s adjusted operating profit is pinned at $219 million, indicating a year-over-year fall of 1.4%.

Normalized growth in apparel is expected to have aided the Solutions Group segment's growth. Also, the Intelligent Labels adoption is increasing in new categories, which is likely to have aided the segment’s quarterly performance. Our model predicts the Solutions Group segment’s revenues to be $695 million, indicating an increase of 1.4% from the prior-year quarter’s actual.

Our estimate for the segment’s operating profit is pinned at $74 million, indicating a decrease of 4.4% from the year-ago quarter’s reported figure.

Avery Dennison Stock’s Price Performance

AVY shares have dipped 25.4% in the past year compared with the industry’s decline of 34.6%.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Hubbell Incorporated (HUBB - Free Report) , slated to release third-quarter 2025 results on Oct. 28, has an Earnings ESP of +0.12% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hubbell’s third-quarter 2025 earnings is pegged at $5.00 per share, suggesting a year-over-year rise of 11.4%. Hubbell has a trailing four-quarter average surprise of 2.3%.

Illinois Tool Works Inc. (ITW - Free Report) , slated to release third-quarter 2025 results on Oct. 24, has an Earnings ESP of +0.84% and a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for Illinois Tool Works’ third-quarter 2025 earnings is pegged at $2.69 per share, suggesting a year-over-year rise of 1.5%. ITW has a trailing four-quarter average surprise of 2.3%.

Otis Worldwide Corporation (OTIS - Free Report) , set to release third-quarter 2025 results on Oct. 29, has an Earnings ESP of +0.02% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Otis Worldwide’s third-quarter 2025 earnings is pegged at $1.00 per share, suggesting a year-over-year rise of 4.2%. Otis Worldwide has a trailing four-quarter average surprise of 0.2%.

Published in