The chart below shows how AVTR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AVTR sees a -0.15% change in stock price 10 days leading up to the earnings, and a +0.17% change 10 days following the report. On the earnings day itself, the stock moves by -1.26%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Bioprocessing Organic Growth: High single-digit organic growth in bioprocessing for Q4, marking the fourth consecutive quarter of outperformance.
EBITDA Margin Expansion: Adjusted EBITDA margin expanded to 18.2%, the highest level in over a year, driven by improved mix and cost transformation initiatives.
Earnings Per Share Growth: Adjusted earnings per share increased to $0.27 in Q4, reflecting a 4% sequential and 8% year-over-year growth.
Free Cash Flow Performance: Generated $222 million in free cash flow for Q4, contributing to a total of $768 million for the year, representing over 110% free cash flow conversion.
Debt Reduction Achievement: Paid down $1.3 billion in debt during 2024, reducing net leverage to 3.2 times adjusted EBITDA, a significant improvement from nearly 4 times at the start of the year.
Negative
Fourth Quarter Revenue Impact: Fourth quarter reported revenue was $1.69 billion, reflecting a $40 million impact from the divestiture of the clinical services business, resulting in only 1% organic growth.
Revenue Decline Analysis: For the full year 2024, reported revenue was $6.78 billion, representing a 2% organic revenue decline versus prior year, aligning with the low end of original guidance.
Revenue Decline Overview: Laboratory Solutions revenue for Q4 was $1.13 billion, a decline of 1% versus prior year on an organic basis, and for the full year, it was $4.61 billion, a 2% decline versus 2023.
Adjusted Gross Profit Analysis: Adjusted gross profit for the year was $2.29 billion, with a 33.8% adjusted gross margin, indicating flat performance compared to the previous year and impacted by inflation and negative fixed cost leverage.
Revenue Decline Forecast: The guidance for 2025 indicates a reported revenue decline of negative 3% to negative 1%, primarily due to a 2% headwind from the clinical services divestiture and another 2% from foreign exchange.
Avantor, Inc. (NYSE:AVTR) Q4 2024 Earnings Call Transcript
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