Spotting Winners: Avery Dennison (NYSE:AVY) And Industrial Packaging Stocks In Q3

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Spotting Winners: Avery Dennison (NYSE:AVY) And Industrial Packaging Stocks In Q3

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the industrial packaging stocks, including Avery Dennison (NYSE:AVY) and its peers.

Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.

The 9 industrial packaging stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Avery Dennison (NYSE:AVY)

Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.

Avery Dennison reported revenues of $2.18 billion, up 4.1% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a slower quarter for the company with a slight miss of analysts’ organic revenue and EPS estimates.

“We delivered a strong third quarter with strong earnings growth, above expectations, driven by higher volume and productivity gains,” said Deon Stander, president and CEO.

Avery Dennison Total Revenue
Avery Dennison Total Revenue

Unsurprisingly, the stock is down 7.8% since reporting and currently trades at $196.01.

Read our full report on Avery Dennison here, it’s free.

Best Q3: International Paper (NYSE:IP)

Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.

International Paper reported revenues of $4.69 billion, up 1.6% year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EPS and EBITDA estimates.

International Paper Total Revenue
International Paper Total Revenue

The market seems happy with the results as the stock is up 16.3% since reporting. It currently trades at $57.05.

Is now the time to buy International Paper? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Silgan Holdings (NYSE:SLGN)

Established in 1987, Silgan Holdings (NYSE:SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.

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