Adhesive manufacturing company Avery Dennison (NYSE: AVY) will be reporting earnings this Wednesday before market open. Here’s what you need to know.
Avery Dennison missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $2.22 billion, flat year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations and a slight miss of analysts’ revenue estimates.
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 1.8% year on year to $2.22 billion, slowing from the 4.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.33 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 Q3 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.5%, and Richardson Electronics reported revenues up 1.6%, topping estimates by 6%. Richardson Electronics traded up 11.4% following the results.
Read our full analysis of Crown Holdings’s results here and Richardson Electronics’s results here.
Investors in the industrials segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Avery Dennison is down 1.8% during the same time and is heading into earnings with an average analyst price target of $189.67 (compared to the current share price of $160.25).
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