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Avery Dennison to Report Q1 Earnings: What's in Store for the Stock?

Zacks Investment Research - Fri Apr 24, 10:32AM CDT
Avery Dennison to Report Q1 Earnings: What's in Store for the Stock?

Avery Dennison CorporationAVY is scheduled to report first-quarter 2026 results before the opening bell on April 28, 2026.

The Zacks Consensus Estimate for AVY’s first-quarter revenues is pegged at $2.27 billion, indicating a 5.7% rise from the year-ago reported figure.

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The consensus estimate for AVY’s earnings has moved down in the past 60 days. The consensus estimate is pegged at $2.41 per share, indicating a year-over-year rise of 4.7%.

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 1.3%.

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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 -0.16%.

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

Factors Likely to Have Shaped AVY’s Q1 Performance

Avery Dennison’s first-quarter results are likely to reflect improved volumes in both 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 rise 5.4% year over year in the quarter to $1.56 billion. The upside will be driven by growth in high-value categories, including Intelligent Labels, and growth in graphics and reflectives. Our estimate for the Materials Group segment’s adjusted operating profit is pinned at $237 million, indicating year-over-year growth of 3.1%.

High-value categories and productivity are expected to have aided the Solutions Group segment's growth. Our model predicts the Solutions Group segment’s revenues to be $701 million, indicating an increase of 4.9% from the prior-year quarter’s actual.

Our estimate for the segment’s operating profit is pinned at $65 million, implying a decrease of 4.3% from the year-ago quarter’s reported figure. Higher employee-related costs and growth

Investments are expected to have hurt margins.

Avery Dennison Stock’s Price Performance

AVY shares have lost 1.5% in the past year compared with the industry’s decline of 11.1%.

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Stocks That Warrant a Look

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

Hubbell Incorporated HUBB, slated to release first-quarter 2026 results on April 30, has an Earnings ESP of +1.27% 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 Hubbell’s first-quarter 2026 earnings is pegged at $3.87 per share, suggesting a year-over-year rise of 10.6%. HUBB has a trailing four-quarter average surprise of 2.8%.

Deere & CompanyDE, scheduled to release second-quarter fiscal 2026 results on May 21, has an Earnings ESP of +6.24% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2026 earnings is pegged at $5.80 per share, indicating a year-over-year dip of 12.6%. DE has a trailing four-quarter average surprise of 11.2%.

Illinois Tool Works Inc.ITW, slated to release first-quarter 2026 results on April 30, has an Earnings ESP of +0.30% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Illinois Tool Works’ first-quarter 2026 earnings is pegged at $2.55 per share, implying a year-over-year rise of 7.1%. ITW has a trailing four-quarter average surprise of 2.1%.

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

Zacks Investment Research

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