Adhesive manufacturing company Avery Dennison (NYSE: AVY) will be reporting earnings this Wednesday before market hours. Here’s what you need to know.
Avery Dennison met analysts’ revenue expectations last quarter, reporting revenues of $2.22 billion, up 1.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter slightly missing analysts’ expectations.
Is Avery Dennison a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Avery Dennison’s revenue to grow 4.5% year on year to $2.28 billion, in line with the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.38 per share.
Analysts covering the company have generally 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 Q4 results, giving us a hint as to what we can expect. International Paper delivered year-on-year revenue growth of 31.1%, beating analysts’ expectations by 1.9%, and Packaging Corporation of America reported revenues up 10.1%, falling short of estimates by 2.9%. International Paper traded down 2.8% following the results while Packaging Corporation of America was also down 2.7%.
Read our full analysis of International Paper’s results here and Packaging Corporation of America’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 7.1% on average over the last month. Avery Dennison is up 3.6% during the same time and is heading into earnings with an average analyst price target of $206.80 (compared to the current share price of $187.08).
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