Avery Dennison Q3 sales rise 5.2%, beat estimates

Overview

• Materials science and digital ID firm's preliminary Q3 sales rose 5.2%, beating analyst expectations

• Adjusted EPS for Q3 increased 2.1%, beating analyst expectations

• Company returned $481 mln to shareholders via buybacks and dividends YTD

Outlook

• Avery Dennison sees FY26 reported EPS of $9.45 to $9.59

• Company expects FY26 adjusted EPS of $10.10 to $10.24

Result Drivers

• INNOVATION AND SERVICE - Co said focus on innovation and service-led differentiation drove mid-single digit organic growth in both high-value and base businesses

• PRODUCTIVITY GAINS - Co said operational agility and robust productivity helped offset impacts from higher inflation and customer destocking

• PRICE BENEFIT - Co said low single-digit volume/mix growth mid-single digit price benefit contributed to Materials Group sales growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Avery Dennison Corp is $196.00, about 8.5% above its October 28 closing price of $180.70

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)