Avery Dennison (NYSE:AVY) Issues Quarterly Earnings Results

Avery Dennison (NYSE:AVY) announced its quarterly earnings results on Thursday. The industrial products company reported $2.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.42, FiscalAI reports. The company had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.30 billion. Avery Dennison had a net margin of 7.62% and a return on equity of 34.60%. The company’s revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.42 earnings per share. Avery Dennison updated its Q3 2026 guidance to 10.000-10.300 EPS.

Here are the key takeaways from Avery Dennison’s conference call:

• Strong second-quarter performance: Organic sales grew 8%, adjusted EPS increased 19% to $2.89, adjusted EBITDA margin expanded 50 basis points to 17.1%, and free cash flow reached $365 million.
• Materials Group organic sales rose approximately 10%, while Solutions Group sales grew 3%; productivity, pricing actions, and operational execution drove margin expansion in both segments despite inflation and higher employee costs.
• Customer inventory pre-buys contributed roughly half of second-quarter organic growth and about $0.25 of EPS, with management expecting most of the benefit to unwind in the third quarter and a smaller carryover into the fourth quarter.
• Management sees accelerating opportunities for Intelligent Labels, particularly in apparel, general retail, and food; a major U.S. grocer rollout is expected to contribute in the second half, while additional pilots are expected to support growth in 2027 and beyond.
• Avery Dennison reinstated full-year 2026 guidance for 3%-4% organic sales growth and adjusted EPS of $10.00-$10.30, while returning more than $210 million to shareholders in the quarter through dividends and share repurchases.

Avery Dennison Trading Down 2.6%

AVY stock traded down $4.49 during mid-day trading on Friday, reaching $170.33. 1,336,802 shares of the stock traded hands, compared to its average volume of 771,908. The stock’s fifty day moving average is $160.66 and its 200-day moving average is $171.23. The company has a market cap of $13.03 billion, a P/E ratio of 18.66, a P/E/G ratio of 3.11 and a beta of 0.82. The company has a current ratio of 1.13, a quick ratio of 0.80 and a debt-to-equity ratio of 1.37. Avery Dennison has a 52-week low of $152.42 and a 52-week high of $199.54.

Avery Dennison Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd will be issued a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 2.3%. The ex-dividend date is Wednesday, September 2nd. Avery Dennison’s payout ratio is presently 45.10%.

Institutional Trading of Avery Dennison

Large investors have recently added to or reduced their stakes in the company. Empowered Funds LLC raised its position in Avery Dennison by 6.4% during the first quarter. Empowered Funds LLC now owns 13,534 shares of the industrial products company’s stock valued at $2,409,000 after buying an additional 819 shares during the period. Focus Partners Wealth lifted its position in shares of Avery Dennison by 7.6% in the first quarter. Focus Partners Wealth now owns 3,918 shares of the industrial products company’s stock worth $697,000 after purchasing an additional 278 shares in the last quarter. Intech Investment Management LLC acquired a new stake in shares of Avery Dennison during the first quarter worth approximately $1,209,000. EverSource Wealth Advisors LLC increased its stake in Avery Dennison by 164.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 389 shares of the industrial products company’s stock valued at $68,000 after buying an additional 242 shares during the period. Finally, Marshall Wace LLP purchased a new stake in Avery Dennison in the 2nd quarter worth approximately $241,000. 94.17% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Weiss Ratings lowered shares of Avery Dennison from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, June 8th. Argus set a $175.00 target price on Avery Dennison in a research note on Thursday, June 4th. Bank of America increased their price target on Avery Dennison from $202.00 to $210.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. lifted their price objective on shares of Avery Dennison from $185.00 to $190.00 and gave the company an “overweight” rating in a research note on Friday. Finally, Raymond James Financial set a $192.00 target price on shares of Avery Dennison in a research note on Tuesday, April 21st. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Avery Dennison has a consensus rating of “Moderate Buy” and an average target price of $201.22.

Trending Headlines about Avery Dennison

Here are the key news stories impacting Avery Dennison this week:

• Positive Sentiment: Q2 results beat estimates: Avery Dennison reported adjusted earnings of $2.89 per share versus the $2.47 consensus estimate, while revenue reached $2.46 billion, above the $2.30 billion forecast. Revenue increased 10.9% year over year, supported by pricing, productivity gains and volume growth. Avery Dennison Q2 earnings report
• Positive Sentiment: Materials Group showed strong momentum: Materials Group sales rose 15.9% to approximately $1.80 billion, helping offset a 0.5% decline in Solutions Group sales. Net income increased 8% to $204.1 million, and the company returned $347 million to shareholders through dividends and repurchases during the first half. Avery Dennison Q2 sales and earnings
• Positive Sentiment: Analyst confidence improved: JPMorgan raised its price target from $185 to $190 and assigned an “overweight” rating, implying roughly 11.5% potential upside from the referenced price. The upgrade reinforces investor optimism following the earnings release. JPMorgan raises Avery Dennison price target
• Neutral Sentiment: Guidance supports the bull case but requires execution: Avery Dennison provided full-year 2026 reported EPS guidance of $9.40 to $9.70. The earnings call highlighted continued benefits from pricing and productivity, but investors will monitor whether those gains persist as demand conditions evolve. Avery Dennison earnings and guidance analysis
• Negative Sentiment: Destocking is a risk: The company flagged possible customer destocking in the second half, which could pressure volumes and temper the earnings momentum reflected in the latest quarter. Solutions Group’s year-over-year sales decline also signals uneven performance across the portfolio. Avery Dennison Q2 earnings analysis
• Negative Sentiment: Insider selling may weigh on sentiment: Reported insider activity showed 24 sales and no purchases over the past six months, including substantial selling by senior executives. While insider transactions do not necessarily reflect operating expectations, the imbalance may concern some investors.

Avery Dennison Company Profile

Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.

The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.