It has been about a month since the last earnings report for Avery Dennison (AVY Quick QuoteAVY - Free Report) . Shares have lost about 10.9% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Avery Dennison due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Avery Dennison Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Avery Dennison has delivered third-quarter 2025 adjusted earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.32. The bottom line increased 1.7% year over year, driven by productivity gains.

Including one-time items, the company reported earnings per share (EPS) of $2.13 compared with the year-ago quarter’s $2.25.

Avery Dennison’s Q3 Revenues & Gross Profit Improve Y/Y

Total revenues grew 1.5% year over year to $2.22 billion and beat the Zacks Consensus Estimate of $2.21 billion.

The cost of sales grew 1.5% year over year to $1.58 billion. The gross profit improved 1.3% year over year to $635 million. The gross margin came in at 28.7%, flat with the year-ago quarter.

Marketing, general and administrative expenses were $354 million compared with the $347 million in the year-ago quarter. The adjusted operating profit was around $281 million compared with the prior-year quarter’s $280 million. The adjusted operating margin was 12.7% compared with the year-ago quarter’s 12.8%.

AVY’s Q3 Segmental Highlights

Revenues in the Materials Group segment increased 1.2% year over year to $1.52 billion. On an organic basis, sales dipped 1.9%. The gains from modest volume growth were offset by deflation-related price reductions. The segment’s adjusted operating profit grew 3.6% year over year to $230 million. 

Revenues in the Solutions Group were up 2% year over year to $699.5 million. On an organic basis, sales grew 3.6%. The segment’s adjusted operating income decreased 9.9% year over year to $69.7 million.

Avery Dennison’s Cash & Debt Position

The company returned $670 million in cash to shareholders through share repurchases and dividend payments in the first nine months of 2025. AVY repurchased 2.5 million shares throughout the period.

Avery Dennison ended the quarter with cash and cash equivalents of $536 million compared with $213 million at the end of the year-ago quarter. The company’s long-term debt was $3.20 billion at the end of the quarter, up from $2.04 billion at the end of the third quarter of 2024.

AVY’s Guidance for Q4

The company expects adjusted EPS between $2.35 and $2.45 for the fourth quarter of 2025.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Avery Dennison has a average Growth Score of C, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Avery Dennison has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.