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    Should Above-Consensus EPS Guidance and Buybacks Require Action From Avery Dennison (AVY) Investors?

    Simply Wall St·02/06/2026 16:11:27
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    • Avery Dennison Corporation recently reported fourth-quarter and full-year 2025 results, with 2025 sales of US$8.86 billion and diluted EPS from continuing operations of US$8.79, alongside a declared quarterly dividend of US$0.94 per share payable on March 18, 2026 to shareholders of record on March 4, 2026.
    • The company coupled its earnings release with first-quarter 2026 EPS guidance that came in above analyst expectations and confirmed ongoing investment in higher-value categories and Intelligent Labels, while also completing a share repurchase of roughly 4.9% of its shares for about US$675.13 million.
    • With the shares returning about 4.05% over seven days, we’ll examine how the above-consensus earnings guidance shapes Avery Dennison’s investment narrative.

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    What Is Avery Dennison's Investment Narrative?

    To own Avery Dennison, you need to be comfortable with a steady, execution-led story rather than a rapid-growth one. The latest earnings and guidance reinforce that picture: 2025 sales of US$8.86 billion and EPS of US$8.79, followed by Q1 2026 EPS guidance above consensus, point to a business leaning on productivity and higher-value categories rather than outsized volume gains. The completed buyback of about 4.9% of shares and the maintained US$0.94 quarterly dividend underline a capital return focus that may appeal to investors who value consistency. At the same time, modest revenue and earnings growth expectations, high debt levels and past earnings pressure keep execution risk front and center. The recent 7-day share price gain of about 4.05% suggests the news has been taken positively, but it does not remove those underlying risks.

    However, debt levels and slower expected growth are still issues investors should understand. Avery Dennison's shares have been on the rise but are still potentially undervalued by 48%. Find out what it's worth.

    Exploring Other Perspectives

    AVY 1-Year Stock Price Chart
    AVY 1-Year Stock Price Chart

    Three Simply Wall St Community members currently see Avery Dennison’s fair value between roughly US$165 and a very large US$371.49. Against that wide spread, the recent earnings beat and above-consensus guidance could influence how you weigh near-term execution risks versus the company’s longer term capital return story, so it can be useful to compare several of these viewpoints before deciding how you feel about the stock.

    Explore 3 other fair value estimates on Avery Dennison - why the stock might be worth as much as 93% more than the current price!

    Build Your Own Avery Dennison Narrative

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

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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.