Yahoo Finance Avery Dennison Corporation (NYSE:AVY) Just Released Its First-Quarter Earnings: Here's What Analysts Think
It's been a good week for Avery Dennison Corporation (NYSE:AVY) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to US$217. Avery Dennison reported in line with analyst predictions, delivering revenues of US$2.2b and statutory earnings per share of US$2.13, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Avery Dennison
After the latest results, the eleven analysts covering Avery Dennison are now predicting revenues of US$8.75b in 2024. If met, this would reflect a reasonable 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 33% to US$9.14. In the lead-up to this report, the analysts had been modelling revenues of US$8.77b and earnings per share (EPS) of US$9.01 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$226, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Avery Dennison, with the most bullish analyst valuing it at US$260 and the most bearish at US$158 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.8% growth on an annualised basis. That is in line with its 5.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.7% annually. So although Avery Dennison is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$226, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Avery Dennison. Long-term earnings power is much more important than next year's profits. We have forecasts for Avery Dennison going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Avery Dennison you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
