Avery Dennison Corporation (NYSE:AVY) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report.       It looks like the results were a bit of a negative overall. While revenues of US$8.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.4% to hit US$6.20 per share.     Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company.  Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Avery Dennison after the latest results.  

NYSE:AVY Earnings and Revenue Growth February 3rd 2024

Taking into account the latest results, the most recent consensus for Avery Dennison from eleven analysts is for revenues of US$8.78b in 2024. If met, it would imply a modest 4.9% increase on its revenue over the past 12 months.       Per-share earnings are expected to bounce 44% to US$9.01.        In the lead-up to this report, the analysts had been modelling revenues of US$8.86b and earnings per share (EPS) of US$9.14 in 2024.        The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.    

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$218.        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$248 and the most bearish at US$154 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.    

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.9% growth on an annualised basis. That is in line with its 5.7% annual growth over the past five years.    Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.9% 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.        Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry.       There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.  

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings.   At Simply Wall St, we have a full range of analyst estimates for Avery Dennison going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Avery Dennison that you need to be mindful 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.