NYSE$AVNT

Avient Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a 5% increase in sales and a 13% increase in adjusted EPS, driven by strong performance in the Americas.

Avient announced second quarter 2022 results, with sales reaching $1.3 billion, a 5% increase over the prior year quarter, and adjusted EPS increasing 13% to $0.98. The company exceeded its second quarter adjusted EPS guidance, driven by better than expected results in the Americas. Avient maintained its full year adjusted EPS guidance of $3.50.

  • Second quarter sales grew to $1.3 billion, a 5% increase over the prior year quarter, and an all-time quarterly record.
  • GAAP EPS increased 24% to $0.92 compared to $0.74 in the prior year quarter.
  • Adjusted EPS increased 13% to $0.98 compared to $0.87 in the prior year quarter, exceeding second quarter guidance of $0.92.
  • Third quarter adjusted EPS guidance of $0.80 introduced with full year adjusted EPS guidance of $3.50 maintained.

Headline financials

Total Revenue

$1.3B

Previous: $1.24B+5.4%
EPS (adj)

$0.98

Previous: $0.87+12.6%
Adjusted Gross Margin

23.3%

Previous: 23.4%-0.3%
Adjusted Operating Margin

10.3%

Previous: 8.8%+17.7%
Capital Expenditures

-$34M

Previous: -$42.1M+19.2%
Free Cash Flow

$50.7M

Previous: $26.7M+89.9%
Net Income

$84.7M

Previous: $68.8M+23.1%
Operating Income

$130M

Previous: $108M+19.8%
Gross Profit

$304M

Previous: $289M+5.2%
Cash & Equivalents

$645M

Previous: $616M+4.7%
Total Assets

$5.04B

Previous: $5.05B-0.1%
Stock-Based Comp

$3.1M

Previous: $2.9M+6.9%

Revenue & EPS history

Avient · Revenue · Quarterly

$1.3B

Q2 2022+5.4%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Avient · $893M total across 2 segments · Q2 2022

  • Color, Additives and Inks
    $649M+4.0%
  • Specialty Engineered Materials
    $244M+1.4%

Forward guidance

Without giving effect to any impacts from the pending acquisition of Dyneema and potential sale of Avient Distribution, the company provided third quarter adjusted EPS guidance of $0.80, a 14% increase from the prior year quarter, and maintained its full year adjusted EPS guidance of $3.50.

Tailwinds

  • Expect demand in Asia to improve from the prior quarter.
  • Growth to continue in the Americas.
  • Third quarter adjusted EPS guidance of $0.80, a 14% increase from the prior year quarter.
  • Maintained full year adjusted EPS guidance of $3.50.
  • Remain on track with timeline for the acquisition and expect to close in September, subject to the satisfaction of customary closing conditions.

Headwinds

  • Softening conditions in Europe.
  • Weaker foreign exchange.
  • Continuing challenges including inflation
  • Continuing challenges including supply chain disruptions
  • Extended lockdowns in China and the war in Ukraine

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 2022

Historical avgQ2 2022

+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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