NYSE$AVNT

Avient Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter results with sales in line with guidance and adjusted EPS exceeding guidance due to favorable margins.

Avient Corporation announced its first quarter 2023 results, with sales of $846 million. GAAP EPS was $0.23, and adjusted EPS was $0.63, exceeding guidance. The company maintained its full-year adjusted EBITDA and EPS guidance.

  • First quarter sales of $846 million in line with guidance
  • Adjusted EPS of $0.63 exceeded guidance of $0.55, driven by better-than-projected margins in both segments
  • Full year adjusted EBITDA and EPS guidance of $530 million and $2.40, respectively, maintained given present macroeconomic uncertainty
  • Sustainability Investor Day to be held on September 20th will highlight Avient’s sustainable solutions portfolio and growth opportunities

Headline financials

Total Revenue

$846M

Previous: $1.29B-34.6%
EPS (adj)

$0.63

Previous: $0.99-36.4%
Adjusted Gross Margin

30.2%

Previous: 23.2%+30.2%
Adjusted Operating Margin

10.0%

Previous: 10.5%-4.8%
Capital Expenditures

-$20.3M

Previous: -$13.3M-52.6%
Free Cash Flow

-$400K

Previous: $70.9M-100.6%
Net Income

$19.9M

Previous: $84.2M-76.4%
Operating Income

$57.1M

Previous: $129M-55.6%
Gross Profit

$248M

Previous: $294M-15.7%
Cash & Equivalents

$583M

Previous: $563M+3.6%
Total Assets

$6.11B

Previous: $5.05B+21.1%
Stock-Based Comp

$3.2M

Previous: $3.2M+0.0%

Revenue & EPS history

Avient · Revenue · Quarterly

$846M

Q1 2023-34.6%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Avient · $847M total across 2 segments · Q1 2023

  • Color, Additives and Inks
    $537M-17.3%
  • Specialty Engineered Materials
    $310M+26.6%

Forward guidance

The company expects second quarter sales and adjusted EPS of $845 million and $0.60, respectively, and is maintaining its previous full year guidance of adjusted EBITDA and EPS of $530 million and $2.40.

Tailwinds

  • Slightly higher margins projected for the second quarter compared to initial projections.
  • Focus on executing long-term strategy.
  • Increasing customer and employee engagement.
  • Optimizing cost structure by capturing additional synergies from the Clariant acquisition.
  • Minimizing working capital.

Headwinds

  • Global demand conditions continue to be challenged by negative consumer sentiment.
  • Rising interest rates.
  • Inflation.
  • Customers in Europe and the Americas remain cautious and are managing inventory levels tightly.
  • China’s re-opening is progressing at a measured pace.

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 2023

Historical avgQ1 2023

+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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