NYSE$AVNT

Avient Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a strong start to the year with adjusted EPS exceeding guidance and increasing 21% over the prior year.

Avient Corporation announced first quarter results for 2024, with sales of $829.0 million. Adjusted EPS was $0.76, exceeding guidance. The company revised its full-year adjusted EPS guidance range to $2.50 to $2.65.

  • First quarter GAAP EPS from continuing operations was $0.54, compared to $0.23 in the prior year quarter.
  • First quarter adjusted EPS of $0.76 exceeded guidance of $0.68, driven by better-than-expected customer demand from defense applications and lower raw material costs.
  • First quarter adjusted EPS increased 21% over the prior year, driven by improved margins and lower net interest expense.
  • Revised 2024 full-year adjusted EPS guidance range to $2.50 to $2.65, from prior guidance of $2.40 to $2.65.

Headline financials

Total Revenue

$829M

Previous: $846M-2.0%
EPS (adj)

$0.76

Previous: $0.63+20.6%
Capital Expenditures

-$24.4M

Previous: -$20.3M-20.2%
Free Cash Flow

$25M

Previous: -$400K+6350.0%
Net Income

$49.4M

Previous: $19.9M+148.2%
Operating Income

$94M

Previous: $57.1M+64.6%
Gross Profit

$278M

Previous: $248M+12.4%
Total Assets

$5.88B

Previous: $6.11B-3.8%
Stock-Based Comp

$3.3M

Previous: $3.2M+3.1%

Revenue & EPS history

Avient · Revenue · Quarterly

$829M

Q1 2024-2%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Avient · $754M total across 3 segments · Q3 2023

  • Color, Additives and Inks
    $487M-14.0%
  • Specialty Engineered Materials
    $268M+3.8%
  • Corporate
    -$700K

Forward guidance

For the second quarter, the company expects adjusted EPS of $0.71, a 13% increase over the prior year. The revised range for adjusted EBITDA is between $510 million and $535 million. The revised range for adjusted EPS is between $2.50 and $2.65.

Tailwinds

  • Expect year over year demand improvement from consumer, packaging and defense end markets
  • Expect raw material deflation to support margin expansion year over year
  • Raising the low end of full year guidance
  • Focused on driving profitable, organic, top-line growth while expanding margins
  • Will amplify innovation by prioritizing investments in high growth end markets with attractive secular trends

Headwinds

  • Mindful of a strengthening U.S. dollar
  • Persistent macro inflation
  • A higher for longer interest rate environment
  • Taking a balanced view considering these factors
  • Underlying growth in regions helped offset softer demand in Europe and Southeast Asia.

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 2024

Historical avgQ1 2024

+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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