Adhesive manufacturing company Avery Dennison (NYSE: AVY) will be reporting results this Tuesday morning. Here’s what investors should know.
Avery Dennison met analysts’ revenue expectations last quarter, reporting revenues of $2.15 billion, flat year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.
Is Avery Dennison a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Avery Dennison’s revenue to be flat year on year at $2.24 billion, slowing from the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.39 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Avery Dennison has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Avery Dennison’s peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 4.6%, and AAR reported revenues up 14.9%, topping estimates by 8.6%. Lindsay traded up 3.9% following the results while AAR was also up 13.4%.
Read our full analysis of Lindsay’s results here and AAR’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 6.5% on average over the last month. Avery Dennison’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $190.97 (compared to the current share price of $178.60).
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