Reflecting On Industrial Packaging Stocks’ Q3 Earnings: Avery Dennison (NYSE:AVY)

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the industrial packaging industry, 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 8 industrial packaging stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8%.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average 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 $2.22 billion, up 1.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter slightly missing analysts’ expectations.

“We delivered a solid third quarter, with earnings above expectations in a continued dynamic environment, reflecting the strength and durability of our overall portfolio,” said Deon Stander, president and CEO.

Interestingly, the stock is up 11.4% since reporting and currently trades at $182.19.

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

Best Q3: Crown Holdings (NYSE:CCK)

Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Crown Holdings reported revenues of $3.20 billion, up 4.2% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 6.8% since reporting. It currently trades at $101.74.

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

Weakest 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 $6.22 billion, up 32.8% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

International Paper delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 5.8% since the results and currently trades at $41.66.

Read our full analysis of International Paper’s results here.

Graphic Packaging Holding (NYSE:GPK)

Founded in 1991, Graphic Packaging (NYSE:GPK) is a provider of paper-based packaging solutions for a wide range of products.

Graphic Packaging Holding reported revenues of $2.19 billion, down 1.2% year on year. This number beat analysts’ expectations by 1.3%. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ sales volume estimates but a significant miss of analysts’ adjusted operating income estimates.

Graphic Packaging Holding had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 5.2% since reporting and currently trades at $14.85.

Read our full, actionable report on Graphic Packaging Holding here, it’s free.

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.

Silgan Holdings reported revenues of $2.01 billion, up 15.1% year on year. This result topped analysts’ expectations by 3.8%. It was a strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.

Silgan Holdings achieved the biggest analyst estimates beat among its peers. The stock is down 6% since reporting and currently trades at $42.05.

Read our full, actionable report on Silgan Holdings here, it’s free.

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