AVNT Earnings Prediction
The chart below shows how AVNT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AVNT sees a +1.80% change in stock price 10 days leading up to the earnings, and a +3.96% change 10 days following the report. On the earnings day itself, the stock moves by +0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
AVNT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
815.20M
8.16%
-4.06%
Gross Margin
32.36%
4.49%
-1.58%
Operating Margin
9.76%
1.56%
-12.07%
Net Margin
4.75%
598.53%
19.35%
EPS
0.41
583.33%
13.89%
No Data Available
AVNT Earnings Analysis
Avient Corporation Corporation (AVNT.N) Earnings Conference Call
Positive
Sales Performance Improvement: 1. Strong Sales Growth: Avient Corporation reported sales of $815 million for Q3 2024, reflecting an 8% increase compared to Q3 2023, with 8.5% organic sales growth when excluding foreign exchange impacts.
Adjusted EBITDA Growth: 2. Increased Adjusted EBITDA: The company achieved adjusted EBITDA of $130 million, marking a 6% growth over the previous year, with both segments expanding EBITDA margins by 40 basis points each.
EPS Growth Surge: 3. Double-Digit EPS Growth: Adjusted earnings per share rose 14% year-over-year to $0.65, surpassing prior guidance by $0.03, driven by strong demand and new product specifications.
Dividend Growth Achievement: 4. Dividend Increase: Avient increased its dividend by 5% to an annualized payout of $1.08 per share, marking the 14th consecutive year of dividend increases since 2011, reflecting confidence in earnings growth.
Latin America Sales Surge: 5. Regional Sales Performance: Latin America experienced a remarkable 27% organic sales growth, primarily driven by new business wins in the packaging sector, showcasing strong demand in the region.
Negative
Telecom and Transportation Challenges: 1. Weak Demand in Telecom and Transportation: The telecom and transportation segments continue to face challenges, with transportation not growing due to reduced global car builds and high inventory levels, while telecom remains sluggish with no expected recovery in the near term.
Variable Compensation Impact: 2. Increased Variable Compensation Accruals: The company anticipates a $15 million headwind related to variable compensation accruals in both Q3 and Q4, impacting overall profitability despite other growth factors.
Muted EMEA Sales Growth: 3. Muted Growth Expectations in EMEA: EMEA is expected to see muted sales growth in Q4 due to weakness in the automotive market and difficult comparisons for defense sales, which were strong in the previous year.
Increased Interest Expenses: 4. Rising Interest Expense: The refinancing of senior notes has resulted in a new interest rate of 6.25%, which, while offset by lower interest on variable rate debt, still contributes to an overall increase in interest expenses for the company.
Fiber-Line Business Challenges: 5. Challenges in Fiber-Line Business: The Fiber-Line segment has been underperforming, particularly in EMEA, due to competition from low-priced imports from China and delays in project funding from the U.S. government, leading to uncertainty in future growth.
AVNT FAQs
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AVNT Earning Call Sentiment
Avient Corporation (AVNT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
AVNT.N
-1.66%Positive
The earnings call summary indicates strong financial performance with 8% sales growth and a 14% EPS increase. The 5% dividend hike further supports a positive outlook. Despite challenges in telecom and transportation, the company exhibits resilience with growth in other segments. The Q&A section reflects cautious optimism, with management addressing end-market performance and growth strategies. The positive sentiment is reinforced by the company's strategic positioning and dividend increase, outweighing uncertainties in guidance and Fiber-Line's future. Considering the market cap, a positive stock price movement of 2% to 8% is expected over the next two weeks.
