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Avery Dennison (AVY) to Report Q2 Earnings: What's in Store?
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Avery Dennison Corporation (AVY - Free Report) is scheduled to report second-quarter 2024 results before the opening bell on Jul 23.
The Zacks Consensus Estimate for AVY’s second-quarter revenues is pegged at $2.18 billion, indicating 4.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.25 per share. Of the five analysts providing estimates for the second quarter, two have raised their estimates, whereas others have kept their estimates unchanged over the past 60 days. Overall, the Zacks Consensus Estimate for AVY’s second-quarter earnings has moved down 0.44% in the past 60 days. The estimate indicates year-over-year growth of 17.2%.
Image Source: Zacks Investment Research
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%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Avery Dennison 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 -0.89%.
Zacks Rank: AVY currently carries a Zacks Rank of 2.
Factors Likely to Have Shaped Q2 Performance
Avery Dennison has been witnessing solid demand for the labeling of non-durable consumer goods like food, beverage, home and personal care products. However, strong demand and supply constraints have been pushing raw material, labor and freight cost increases. These factors are expected to have impacted the company’s margins in the to-be-reported quarter.
Nonetheless, Avery Dennison has been executing several pricing and re-engineering actions to mitigate inflationary cost pressure.
Our model predicts the Materials Group segment’s organic sales to rise 2.9% year over year in the quarter. We expect the segment’s second-quarter 2024 revenues to increase 2.9% year over year to $1.52 billion. Our prediction for the segment’s adjusted operating profit is pinned at $224.7 million, indicating a year-over-year improvement of 12.4%.
We expect the Solutions Group segment’s organic sales to grow 6.3% year over year in the second quarter. Our model predicts the segment’s sales at $659 million, suggesting an increase of 7.3% from the prior-year quarter’s actual . The same for the segment’s operating profit is pinned at $64.7 million, indicating an increase of 17.6% from the year-ago quarter’s reported figure.
Price Performance
AVY shares have gained 25.8% in the past year compared with the industry’s growth of 27.3%.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for CR’s earnings is pegged at $1.24 per share, which indicates year-over-year growth of 12.7%. It has a trailing four-quarter average surprise of 15.2%.
Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its second-quarter 2024 on Jul 31, has an Earnings ESP of +1.62% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Ingersoll Rand’s second-quarter 2024 earnings is pegged at 77 cents per share, suggesting year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 12.8%.
Eaton Corporation plc (ETN - Free Report) , expected to release earnings soon, currently has an Earnings ESP of +0.42% and a Zacks Rank of 3.
The consensus estimate for Eaton’s earnings for the second quarter of 2024 is pegged at $2.61 per share, indicating year-over-year growth of 18.1%. ETN has a trailing four-quarter average surprise of 4.7%
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Avery Dennison (AVY) to Report Q2 Earnings: What's in Store?
Avery Dennison Corporation (AVY - Free Report) is scheduled to report second-quarter 2024 results before the opening bell on Jul 23.
The Zacks Consensus Estimate for AVY’s second-quarter revenues is pegged at $2.18 billion, indicating 4.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.25 per share. Of the five analysts providing estimates for the second quarter, two have raised their estimates, whereas others have kept their estimates unchanged over the past 60 days. Overall, the Zacks Consensus Estimate for AVY’s second-quarter earnings has moved down 0.44% in the past 60 days. The estimate indicates year-over-year growth of 17.2%.
Image Source: Zacks Investment Research
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%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Avery Dennison 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 -0.89%.
Zacks Rank: AVY currently carries a Zacks Rank of 2.
Factors Likely to Have Shaped Q2 Performance
Avery Dennison has been witnessing solid demand for the labeling of non-durable consumer goods like food, beverage, home and personal care products. However, strong demand and supply constraints have been pushing raw material, labor and freight cost increases. These factors are expected to have impacted the company’s margins in the to-be-reported quarter.
Nonetheless, Avery Dennison has been executing several pricing and re-engineering actions to mitigate inflationary cost pressure.
Our model predicts the Materials Group segment’s organic sales to rise 2.9% year over year in the quarter. We expect the segment’s second-quarter 2024 revenues to increase 2.9% year over year to $1.52 billion. Our prediction for the segment’s adjusted operating profit is pinned at $224.7 million, indicating a year-over-year improvement of 12.4%.
We expect the Solutions Group segment’s organic sales to grow 6.3% year over year in the second quarter. Our model predicts the segment’s sales at $659 million, suggesting an increase of 7.3% from the prior-year quarter’s actual . The same for the segment’s operating profit is pinned at $64.7 million, indicating an increase of 17.6% from the year-ago quarter’s reported figure.
Price Performance
AVY shares have gained 25.8% in the past year compared with the industry’s growth of 27.3%.
Image Source: Zacks Investment Research
Stocks That Warrant a Look
Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Crane Company (CR - Free Report) is scheduled to release its second-quarter results on Jul 29. It has an Earnings ESP of +0.96% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CR’s earnings is pegged at $1.24 per share, which indicates year-over-year growth of 12.7%. It has a trailing four-quarter average surprise of 15.2%.
Ingersoll Rand Inc. (IR - Free Report) , scheduled to release its second-quarter 2024 on Jul 31, has an Earnings ESP of +1.62% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Ingersoll Rand’s second-quarter 2024 earnings is pegged at 77 cents per share, suggesting year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 12.8%.
Eaton Corporation plc (ETN - Free Report) , expected to release earnings soon, currently has an Earnings ESP of +0.42% and a Zacks Rank of 3.
The consensus estimate for Eaton’s earnings for the second quarter of 2024 is pegged at $2.61 per share, indicating year-over-year growth of 18.1%. ETN has a trailing four-quarter average surprise of 4.7%
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.