Abstract
Avery Dennison will report fiscal third-quarter results on October 29, 2026 Pre-MKt; this preview summarizes consensus revenue, margin, and EPS expectations, compares with prior-quarter actuals, and highlights segment trajectories and analyst sentiment gathered within the past six months.
Market Forecast
Consensus points to revenue of 2.26 billion US dollars for the current quarter, with an estimated adjusted EPS of 2.32 and EBIT of 272.61 million US dollars; year over year, revenue is projected to grow 1.93%, EPS to decline 0.08%, and EBIT to decline 0.92%. Company disclosures from the last report guide for steady gross profitability, with investors focused on sustaining a last-quarter gross margin of 29.62%, a net margin context around 8.29%, and adjusted EPS trending modestly below last year on mix and cost dynamics. The main business is expected to maintain stable momentum, supported by label and materials demand normalization, while the solutions franchise continues to expand its share. The most promising segment is Solutions at 666.80 million US dollars last quarter, with continuing double-digit pipeline indicators relative to the prior year implied by its mix gains.
Last Quarter Review
Avery Dennison delivered revenue of 2.46 billion US dollars, a gross margin of 29.62%, GAAP net profit attributable to shareholders of 204.00 million US dollars, a net profit margin of 8.29%, and adjusted EPS of 2.89, with revenue up 10.92% year over year and adjusted EPS up 19.42% year over year. A notable highlight was the sequential rebound in profit, with net income up 21.42% quarter on quarter, reflecting better operating leverage and disciplined price-cost management. The main business mix featured Materials at 1.80 billion US dollars and Solutions at 666.80 million US dollars, indicating a continued mix shift toward higher-value, faster-growing solution offerings.
Current Quarter Outlook
Main Business: Materials and Pressure-Sensitive Labels
The core materials franchise remains the earnings anchor this quarter, with consensus revenue at the company level implying a modest sequential moderation following the strong prior print. Inventory normalization across consumables and steady end-market labeling volumes should keep shipments stable, while price-cost dynamics remain balanced as raw-material deflation tails off. Margin sensitivity will center on product mix and operating rate discipline, with the company seeking to protect the roughly 29–30% gross margin cadence evident last quarter.
Most Promising Business: Solutions
Solutions, which contributed 666.80 million US dollars last quarter, is positioned to drive the structural growth narrative through value-added applications and enterprise programs. Pipeline momentum points to continued share expansion, and the segment’s mix uplift can buffer modest volume variances in the core materials lines. Management attention to commercialization velocity and cross-selling into global accounts should support double-digit-style growth outperformance versus the corporate average over time, aiding earnings durability even as broader industrial demand remains mixed.
Key Stock Price Drivers This Quarter
Three factors appear most relevant for the share reaction on October 29, 2026. First is the trajectory of gross margin relative to the prior quarter’s 29.62%; holding or modestly expanding margins could offset the small projected EPS decline and validate pricing discipline. Second is the revenue quality mix between Materials and Solutions, where evidence of continued Solutions expansion would support a higher multiple given its growth and returns profile. Third is the EPS bridge from last quarter’s 2.89 to the expected 2.32, where clarity on volume, mix, and operating expense cadence will frame the durability of earnings into year-end; even small beats or improved guidance could recalibrate sentiment given the tight consensus range.
Analyst Opinions
Across the most recent six-month window, the balance of institutional commentary skews constructive, with a majority of analysts expressing a supportive outlook tied to steady revenue growth and resilient margins. Analysts emphasize the improving operating leverage evidenced by last quarter’s 21.42% sequential net profit increase and the sustained gross margin near 30%, which underpins confidence in near-term earnings stability. Several well-followed institutions highlight that the projected 1.93% year-over-year revenue growth paired with a minimal EPS contraction reflects conservative assumptions on mix and costs; they expect upside potential if Solutions mix gains continue and if price realization remains intact.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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