Overview

* Avery Dennison Q3 net sales rose 1.5%, meeting analysts' expectations

* Adjusted EPS for Q3 beat analyst expectations, rising 2%

* Company completed acquisition of Meridian Adhesives Group's U.S. flooring adhesives business

Outlook

* Avery Dennison expects 4Q25 reported EPS of $2.15 to $2.25

* Company forecasts 4Q25 adjusted EPS of $2.35 to $2.45

Result Drivers

* MATERIALS GROUP - Sales increased 1.2% but were down 1.9% organically due to deflation-related price reductions

* SOLUTIONS GROUP - Sales rose 2% with high-value categories, including Intelligent Labels, up high single digits

* COST CONTROLS - Adjusted operating margin in Materials Group improved by 40 basis points mainly due to productivity benefits

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Meet $2.22 $2.22

bln bln (10

Analysts

)

Q3 Beat $2.37 $2.32

Adjusted (10

EPS Analysts

)

Q3 EPS $2.13

Q3 Net $166.30

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "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 ( AVY ) is $192.00, about 14.8% above its October 21 closing price of $163.53

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(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.)