Avery Dennison Corporation AVY is scheduled to report third-quarter 2024 results before the opening bell on Oct. 23.

The Zacks Consensus Estimate for AVY’s third-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 $2.32 per share. The Zacks Consensus Estimate for AVY’s third-quarter earnings has been unchanged in the past 60 days. The estimate indicates year-over-year growth of 10.5%.

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AVY’s Solid Earnings Surprise History

Avery Dennison’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 4%.

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

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 0.00%.

Zacks Rank: AVY currently carries a Zacks Rank of 2.

Factors Likely to Have Shaped AVY’s Q3 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 3.7% year over year in the quarter. We expect the segment’s third-quarter 2024 revenues to increase 3.7% year over year to $1.51 billion. Our prediction for the segment’s adjusted operating profit is pinned at $229.8 million, indicating a year-over-year improvement of 10.3%.

We expect the Solutions Group segment’s organic sales to grow 5.8% year over year in the third quarter. Our model predicts the segment’s sales at $680 million, suggesting an increase of 5.9% from the prior-year quarter’s actual. The same for the segment’s operating profit is pinned at $70.5 million, indicating an increase of 14.8% from the year-ago quarter’s reported figure.

Avery Dennison’s Share Price Outperforms Industry

AVY shares have gained 28.9% in the past year compared with the industry’s growth of 23%.

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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.

Crane Company CR is scheduled to release its third-quarter results on Oct. 28. It has an Earnings ESP of +0.09% 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 $1.31 per share, which indicates year-over-year growth of 27.2%. It has a trailing four-quarter average surprise of 11.2%.

Ingersoll Rand Inc. IR, scheduled to release its third-quarter 2024 on Oct. 31, currently has an Earnings ESP of +1.22% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Ingersoll Rand’s third-quarter 2024 earnings is pegged at 82 cents per share, suggesting year-over-year growth of 6.5%. It has a trailing four-quarter average surprise of 11%.

Eaton Corporation plc ETN, expected to release earnings soon, has an Earnings ESP of +0.48% and a Zacks Rank of 2 at present.

The consensus estimate for Eaton’s earnings for the third quarter of 2024 is pegged at $2.80 per share, indicating year-over-year growth of 13.4%. ETN has a trailing four-quarter average surprise of 4.7%.

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Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

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Crane Company (CR) : Free Stock Analysis Report

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