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Avery Dennison (AVY) to Post Q1 Earnings: What to Expect?

Avery Dennison Corporation AVY is slated to report first-quarter 2016 results on Apr 27.

In the last quarter, the company delivered a positive earnings surprise of 8.97% and an average positive earnings surprise of 8.21% over the last four quarters.

Let’s see how things are shaping up for this announcement.

 



Factors to Consider

Avery Dennison is expected to benefit from continued focus on productivity, restructuring actions and cost control. Despite foreign currency volatility and weak demand in China, its two market-leading core businesses are well positioned for profitable growth.

Earnings Whispers

Our proven model does not conclusively show that Avery Dennison is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Zacks ESP: Earnings ESP for Avery Dennison is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 86 cents.

Zacks Rank: Avery Dennison carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Emerson Electric Co. EMR has an Earnings ESP of +3.18% and a Zacks Rank #2.

Mobile Mini, Inc. MINI has an Earnings ESP of +3.57% and a Zacks Rank #3.

Eaton Corporation plc ETN has an Earnings ESP of +1.18% and a Zacks Rank #3.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MOBILE MINI INC (MINI): Free Stock Analysis Report
 
EMERSON ELEC CO (EMR): Free Stock Analysis Report
 
EATON CORP PLC (ETN): Free Stock Analysis Report
 
AVERY DENNISON (AVY): Free Stock Analysis Report
 
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