Avery Dennison Set to Report Q2 Earnings: Here's What to Expect

Avery Dennison Corporation AVY is scheduled to report second-quarter 2025 results before the opening bell on July 22, 2025.

The Zacks Consensus Estimate for AVY’s second-quarter revenues is pegged at $2.23 billion, indicating a 0.2% dip from the year-ago reported figure.

The consensus estimate for AVY’s earnings has moved down in the past 60 days. The consensus estimate is pegged at $2.38 per share, indicating a year-over-year dip of 1.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

AVY’s Earnings Surprise History

Avery Dennison’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 1.9%.

What the Zacks Model Unveils for Avery Dennison

Our proven model does not conclusively predict an earnings beat for AVY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Avery Dennison has an Earnings ESP of -0.42%.

Zacks Rank: AVY currently carries a Zacks Rank #3.

Factors Likely to Have Shaped AVY’s Q2 Performance

Avery Dennison’s second-quarter results are likely to have reflected improved volumes in both its segments. However, higher raw material, labor and freight costs are expected to have impacted the company’s margins. The impacts are anticipated to have been offset by AVY’s productivity improvement and cost-saving actions.

Our model predicts the Materials Group segment’s revenues to dip 0.3% year over year in the quarter to $1.54 billion. Higher volumes of Label Materials are likely to have been offset by currency translation. Our estimate for the Materials Group segment’s adjusted operating profit is pinned at $242 million, indicating a year-over-year fall of 0.8%.

Normalized growth in apparel is expected to have aided the Solutions Group segment's growth. Also, the Intelligent Labels adoption is increasing in new categories, which is likely to have aided the segment’s quarterly performance. The gains are anticipated to have been partially offset by currency translation. Our model predicts the Solutions Group segment’s revenues to be $682 million, indicating a decrease of 0.9% from the prior-year quarter’s actual.

Our estimate for the segment’s operating profit is pinned at $69 million, indicating a decrease of 0.7% from the year-ago quarter’s reported figure.

Avery Dennison Stock’s Price Performance

AVY shares have dipped 19% in the past year compared with the industry’s decline of 5%.

Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Emerson Electric Co. EMR, expected to release earnings on Aug 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.

Illinois Tool Works Inc. ITW, slated to release its second-quarter 2025 results on July 30, has an Earnings ESP of +0.97% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Illinois Tool Works’ second-quarter 2025 earnings is pegged at $2.55 per share, suggesting a year-over-year rise of 0.4%. ITW has a trailing four-quarter average surprise of 3%.

Crown Holdings, Inc. CCK is scheduled to release its second-quarter 2025 results on July 21. It has an Earnings ESP of +0.27% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Crown Holdings’ earnings is pegged at $1.86 per share, which indicates a year-over-year increase of 2.8%. CCK has a trailing four-quarter average surprise of 16.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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