• On July 22, 2025, Avery Dennison reported its second-quarter financial results, provided guidance for third-quarter earnings of US$2.14 to US$2.30 per share, and completed a share repurchase tranche totaling US$100.63 million for 591,900 shares.
• Despite relatively stable sales, the company achieved year-over-year gains in net income and earnings per share, reflecting improved profitability and continued capital returns to shareholders.
• We’ll explore how Avery Dennison’s updated earnings guidance may influence the company’s investment narrative and future growth outlook.

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Avery Dennison Investment Narrative Recap

To be a shareholder in Avery Dennison, you need to believe in the company’s ability to drive profitability through disciplined capital allocation, expand in high-value markets, and weather unpredictable macro and trade policy changes. The latest results show steady earnings growth, while quarterly guidance appears aligned with recent performance; however, the greatest risk, revenue volatility from shifting tariffs or global demand, remains largely unchanged by this update.

Among recent announcements, the continued share repurchases stand out, with the company completing a tranche of US$100.63 million for 591,900 shares. This move underscores an ongoing commitment to returning capital to shareholders, and highlights Avery Dennison’s financial flexibility amid cautious quarterly outlooks.

By contrast, it’s worth remembering that investors need to be aware of how sudden changes in apparel tariffs or external economic conditions could...

Read the full narrative on Avery Dennison (it's free!)

Avery Dennison's narrative projects $9.7 billion revenue and $910.8 million earnings by 2028. This requires 3.6% yearly revenue growth and a $212 million earnings increase from $698.8 million.

Uncover how Avery Dennison's forecasts yield a $189.62 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range from US$165.12 to US$340.97. Even as many see strong potential in intelligent labeling and productivity gains, these opinions remind you that forecasts on Avery Dennison’s future remain diverse and worth examining further.

Explore 3 other fair value estimates on Avery Dennison - why the stock might be worth 9% less than the current price!

Build Your Own Avery Dennison Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avery Dennison research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Avery Dennison research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avery Dennison's overall financial health at a glance.

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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.

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