Avery Dennison Set to Report Q4 Earnings Amid Mixed Industrial Sector Performance
Materials science leader Avery Dennison (NYSE: AVY) is scheduled to release its fourth-quarter financial results before Wednesday's market open, providing investors with a critical update on the adhesive and labeling specialist's performance amid shifting industrial demand.
Last quarter, the company reported revenue of $2.22 billion, a 1.5% year-over-year increase that aligned with analyst projections. While it exceeded EBITDA estimates, its forward earnings-per-share guidance fell slightly short of expectations, highlighting ongoing margin pressures in the sector.
For the upcoming report, Wall Street anticipates revenue to reach $2.28 billion, representing a 4.5% increase from the prior-year period. Adjusted earnings are forecast at $2.38 per share. Analyst estimates have remained largely unchanged over the past month, suggesting expectations for a steady performance. However, the company has a track record of revenue misses, falling short of consensus six times in the past two years.
The broader industrial packaging segment has delivered mixed signals ahead of Avery Dennison's report. International Paper recently posted a strong 31.1% revenue jump, surpassing estimates, while Packaging Corporation of America reported a 10.1% increase that nonetheless missed projections. Both stocks declined following their earnings releases, reflecting investor caution despite top-line growth.
Industrial sector stocks have risen an average of 7.1% over the past month, with Avery Dennison shares gaining 3.6%. The stock currently trades around $187.08, below the average analyst price target of $206.80, indicating potential upside if the company delivers a solid report and confident outlook.
Market observers will be watching for commentary on raw material costs, demand in key retail and logistics end-markets, and the integration of recent acquisitions. The company’s ability to navigate inflationary pressures while maintaining pricing power will likely be a focal point during the earnings call.
Michael Torres, Portfolio Manager at Ridgeway Capital: “Avery Dennison’s consistent free cash flow and strong market position in labeling solutions provide a buffer. I’m looking for confirmation that their smart label and RFID segments are gaining traction—that’s where the long-term growth story lies.”
Sarah Chen, Industrial Analyst at ClearView Research: “The guidance miss last quarter was a red flag. With packaging peers showing volatility, I’m skeptical they can hit these targets without sacrificing margins. The stock’s recent run-up feels premature.”
David R. Miller, Independent Market Commentator: “This is another classic case of Wall Street lowballing estimates so companies can ‘beat.’ The whole earnings theater is tiresome. If they miss again, it’s time to ask if management’s strategy is just glue and promises.”
Linda Patterson, Senior Editor at The Industrial Digest: “Beyond the headline numbers, the real story will be sustainability-driven demand. Brands are pushing for recyclable labeling—Avery’s innovation in that space could be a quiet driver.”