NYSE$AVNT

Avient Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported second quarter results, exceeding expectations due to increased sales in Asia and better margins in the Color segment.

Avient Corporation reported a decrease in overall sales by 18.6% due to weak automotive and consumer discretionary demand, but experienced a 13% increase in sales in Asia. The company's adjusted EPS exceeded expectations by $0.03 due to higher margins in the Color segment and an uptick in orders in the latter part of June. They also completed the acquisition of Clariant’s masterbatch business for approximately $1.4 billion and announced their new company name: Avient Corporation.

  • GAAP EPS from continuing operations was $0.25, compared to $0.30 in the prior year second quarter.
  • Adjusted EPS from continuing operations was $0.39, excluding the impact of the financing for the Clariant masterbatch acquisition.
  • Second quarter adjusted EPS exceeded what was communicated on the June 16th conference call by $0.03, due to higher margins in the Color segment and an uptick in orders in the latter part of June.
  • Completed acquisition of Clariant’s masterbatch business for net purchase price of approximately $1.4 billion and announced new company name: Avient Corporation

Headline financials

Total Revenue

$609M

Previous: $904M-32.6%
EPS (adj)

$0.28

Previous: $0.74-62.2%
Adjusted Gross Margin

24.6%

No prior period
Adjusted Operating Margin

6.2%

No prior period
Capital Expenditures

-$21.3M

Previous: -$26.5M+19.6%
Free Cash Flow

$1.5M

Previous: $15.6M-90.4%
Net Income

$22.8M

Previous: $42.1M-45.8%
Operating Income

$38M

Previous: $71.6M-46.9%
Gross Profit

$150M

Previous: $206M-27.2%
Cash & Equivalents

$1.98B

Previous: $126M+1475.3%
Total Assets

$4.34B

Previous: $2.93B+48.0%
Stock-Based Comp

$3.6M

Previous: $3.2M+12.5%

Revenue & EPS history

Avient · Revenue · Quarterly

$609M

Q2 2020-32.6%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Avient · $386M total across 2 segments · Q2 2020

  • Color, Additives and Inks
    $227M-15.2%
  • Specialty Engineered Materials
    $159M-18.7%

Forward guidance

Management will provide more commentary related to its second quarter performance, the Clariant Masterbatch acquisition and initial thoughts on third quarter performance on its upcoming conference call.

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 Q2 2020

Historical avgQ2 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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