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Avery Dennison Gears up to Report Q4 Earnings: Here's What to Expect

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Avery Dennison Corporation (AVY - Free Report) is scheduled to report fourth-quarter 2024 results, before the opening bell on Jan. 30, 2025.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for AVY’s fourth-quarter revenues is pegged at $2.20 billion, indicating 4.2% growth from the year-ago figure.

The consensus estimate for AVY’s earnings has moved down in the past 60 days. The consensus estimate is currently pegged at $2.37 per share, indicating year-over-year growth of 9.7%.

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AVY’s Solid Earnings Surprise History

Avery Dennison’s earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, the average surprise being 3.74%.

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Image Source: Zacks Investment Research

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 -1.35%.

Zacks Rank: AVY currently carries a Zacks Rank #4 (Sell).

Factors Likely to Have Shaped AVY’s Q4 Performance

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

Our model predicts the Materials Group segment’s revenues to rise 4.2% year over year in the quarter to $1.48 billion. The growth will be aided by higher volumes of Label Materials. Notably, Label Materials accounts for around 74% of the segment’s revenues. Our prediction for the Materials Group segment’s adjusted operating profit is pinned at $231.5 million, indicating a year-over-year improvement of 16.7%.

Our model predicts the Solutions Group segment’s sales to be $734.8 million, indicating an increase of 6.2% from the prior-year quarter’s actual. Normalized growth in apparel will aid the segment’s growth. Also, Intelligent Labels adoption is increasing in new categories, which is expected to aid the segment’s results in the quarter. 

The estimate for the segment’s operating profit is pinned at $74.1 million, indicating an increase of 16.7% from the year-ago quarter’s figure.

Avery Dennison Stock’s Price Performance

AVY shares have dipped 5.3% in the past year compared with the industry’s decline of 9.4%.

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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.

Flowserve Corporation (FLS - Free Report) is expected to release its fourth-quarter 2024 results soon. It has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FLS’ earnings is pegged at 77 cents per share, which indicates year-over-year growth of 13.2%. It has a trailing four-quarter average surprise of 10.8%.

Northwest Pipe Company (NWPX - Free Report) , expected to release its fourth-quarter 2024 results soon, has an Earnings ESP of +9.49% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Northwest Pipe’s fourth-quarter 2024 earnings is pegged at 91 cents per share, indicating year-over-year growth of 68.5%. It has a trailing four-quarter average surprise of 32.4%.

Allegion plc (ALLE - Free Report) , expected to release earnings soon, currently has an Earnings ESP of +1.34% and a Zacks Rank of 3.

The consensus estimate for Allegion’s earnings for the fourth quarter of 2024 is pegged at $1.74 per share, indicating year-over-year growth of 3.6%. ALLE has a trailing four-quarter average surprise of 9.9%.


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