/Avery%20Dennison%20Corp_%20trailer%20by-Jonathan%20Weiss%20via%20Shutterstock.jpg)
Valued at a market cap of $12.7 billion, Avery Dennison Corporation (AVY) is a materials science and digital identification solutions company based in Mentor, Ohio. It specializes in pressure-sensitive materials, packaging, labeling, RFID tags, apparel branding, and medical adhesives. The company is scheduled to announce its fiscal Q3 earnings for 2025 before the market opens on Wednesday, Oct. 22.
Ahead of this event, analysts expect this materials science company to report a profit of $2.34 per share, up marginally from $2.33 per share in the year-ago quarter. The company has topped Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion. In Q2, AVY’s EPS of $2.42 exceeded the forecasted figure by 1.7%.
For fiscal 2025, analysts expect AVY to report a profit of $9.50 per share, slightly higher from $9.43 per share in fiscal 2024. Furthermore, its EPS is expected to grow 9.5% year-over-year to $10.40 in fiscal 2026.
Shares of AVY have declined 24.9% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 17.6% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 21% uptick over the same time frame.
Shares of AVY soared 1.5% after its mixed Q2 earnings release on Jul. 22. On the downside, the company’s revenue declined slightly year-over-year to $2.2 billion, missing consensus estimates, as trade policy changes and weaker sourcing demand in the apparel and general retail categories weighed on sales. However, despite the top-line fall, its net income per share of $2.42 improved 10.5% from the year-ago quarter and came in 1.7% ahead of analyst expectations, which initially lifted investor sentiment. However, the stock reversed course after the initial jump and trended lower for the following eight consecutive trading sessions.
Wall Street analysts are moderately optimistic about AVY’s stock, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, five recommend "Strong Buy," one indicates a "Moderate Buy," and seven suggest "Hold.” The mean price target for AVY is $198.33, implying a 21.9% potential upside from the current levels.
