NYSE$AVNT

Avient Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a decrease in sales but an increase in operating income and EPS due to improved margins and cost containment.

PolyOne reported a decrease in sales by 5% due to the COVID-19 pandemic, but an increase in operating income by 5% due to improved margins and cost containment actions. GAAP EPS from continuing operations increased to $0.38, and adjusted EPS (excluding the impact of additional shares) improved to $0.53.

  • GAAP EPS from continuing operations was $0.38 compared to $0.29 in the prior year first quarter.
  • Adjusted EPS from continuing operations (excluding the impact of additional shares) improved 23% to $0.53 compared to $0.43 in the prior year first quarter.
  • Operating income increased 5% as improved margins in all segments and cost containment actions offset a 5% sales decline related to the COVID-19 pandemic
  • Liquidity remains strong as the company finished the quarter with $1.28 billion in cash.

Headline financials

Total Revenue

$712M

Previous: $900M-20.9%
EPS (adj)

$0.48

Previous: $0.64-25.0%
Adjusted Gross Margin

24.1%

Previous: 22.9%+5.2%
Adjusted Operating Margin

8.8%

Previous: 7.9%+11.4%
Capital Expenditures

-$11.1M

Previous: -$9.9M-12.1%
Free Cash Flow

$21.7M

Previous: $28.3M-23.3%
Net Income

$32.8M

Previous: $38.2M-14.1%
Operating Income

$52.8M

Previous: $68.3M-22.7%
Gross Profit

$172M

Previous: $196M-12.6%
Cash & Equivalents

$1.28B

Previous: $108M+1082.1%
Total Assets

$3.74B

Previous: $2.96B+26.4%
Stock-Based Comp

$2.1M

Previous: $2.5M-16.0%

Revenue & EPS history

Avient · Revenue · Quarterly

$712M

Q1 2020-20.9%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Avient · $442M total across 2 segments · Q1 2020

  • Color, Additives and Inks
    $257M-2.6%
  • Specialty Engineered Materials
    $185M-2.4%

Forward guidance

Given the uncertainty in global markets, the company does not plan to provide specific guidance for the second quarter or the balance of the year at this time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.8%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+12.7%

Q1 2016

Best reaction

-19.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.2%-6.8%-10.4%
Q4 2025+2.4%+5.3%-16.1%
Q3 2025-0.1%-5.3%-1.9%
Q1 2025+4.9%+8.2%+6.9%
Q4 2024+2.9%+5.9%-3.5%
Q3 2024-4.9%-0.7%+5.6%
Q2 2024+6.3%+9.5%+13.2%
Q1 2024+1.5%+2.3%+1.4%
Q4 2023+9.5%+7.8%+13.4%
Q3 2023+8.0%+3.4%+12.9%
Q2 2023-4.1%-2.5%-9.8%
Q1 2023-3.0%+1.6%+3.4%
Q4 2022+8.8%+11.0%-1.7%
Q3 2022-19.7%-16.2%+1.9%
Q2 2022-1.0%-1.2%+7.9%
Q1 2022+11.0%+8.1%-2.6%
Q4 2021+8.8%+8.0%+0.7%
Q3 2021+0.7%+2.8%+7.3%
Q2 2021-2.6%-5.3%+7.7%
Q1 2021+3.6%+5.9%+3.5%
Q4 2020-0.5%+4.5%+16.4%
Q3 2020-3.6%+1.5%+15.3%
Q2 2020-2.2%-1.0%+0.8%
Q1 2020+1.8%+8.9%+22.6%
Q4 2019+5.1%-2.1%-28.0%
Q3 2019+3.0%+1.6%-0.3%
Q2 2019+1.0%+3.8%-3.9%
Q1 2019-7.5%-8.9%-15.4%
Q4 2018+1.2%+0.1%+1.3%
Q3 2018-12.5%-11.6%-6.2%
Q2 2018-2.4%-1.1%-3.7%
Q1 2018-2.1%-6.4%-3.3%
Q4 2017-4.9%-4.5%-7.2%
Q3 2017+7.7%+6.4%+8.0%
Q2 2017-5.5%-6.0%-7.3%
Q1 2017+4.9%+3.5%+0.9%
Q4 2016+3.2%+4.6%+3.5%
Q3 2016-5.6%-6.3%+5.5%
Q2 2016-5.5%-5.1%-9.3%
Q1 2016+12.7%
Q4 2015-1.7%
Q3 2015+0.1%
Q2 2015-10.6%
Q1 2015+1.8%
Q4 2014-2.2%
Q3 2014+1.1%
Q2 2014+0.7%
Q1 2014-1.1%
Q4 2013+6.2%
Q3 2013+0.9%
Q2 2013+5.4%
Q1 2013+5.1%
Q4 2012-3.5%
Q3 2012+8.1%
Q2 2012-0.9%
Q1 2012+2.7%
Q4 2011-2.7%
Q4 2009-2.7%
Q3 2010-12.6%
Q3 2011-12.6%
Q2 2011-8.7%
Q4 2010+0.9%
Q1 2010+0.9%
Q2 2010+0.9%
Q1 2011+0.9%

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