Overview
Materials science firm's Q4 revenue slightly missed analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company returned $191 mln to shareholders through dividends and share repurchases in Q4
Outlook
Avery Dennison expects 1Q26 reported EPS of $2.27 to $2.33
Company forecasts 1Q26 adjusted EPS of $2.40 to $2.46
Company cites global economic conditions and tariffs as factors affecting future results
Result Drivers
HIGH-VALUE CATEGORIES - Avery Dennison reported growth in high-value categories, which now represent 45% of total revenue, contributing to overall performance
PRODUCTIVITY IMPROVEMENTS - Benefits from productivity helped offset higher employee-related costs, maintaining adjusted EBITDA margins
DEFLATION IMPACT - Deflation-related price reductions offset volume/mix growth in the Materials Group, affecting sales
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Miss* | $2.27 bln | $2.28 bln (10 Analysts) |
Q4 Adjusted EPS | Beat | $2.45 | $2.40 (9 Analysts) |
Q4 EPS | $2.15 | ||
Q4 Net Income | $166.40 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and 1 "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 $210.00, about 12.4% above its February 3 closing price of $186.82
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nBwc72H7Xa
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.)