NYSE$AVNT

Avient Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Second quarter GAAP and adjusted earnings per share (EPS) were $0.24 and $0.63, respectively, exceeding expectations due to favorable margins in both segments.

Avient Corporation announced its second quarter 2023 results, with adjusted EPS exceeding guidance at $0.63, driven by better-than-projected margins in both segments. The company is maintaining its full year adjusted EPS guidance of $2.40, despite lower estimated sales of $3.3 billion.

  • GAAP EPS of $0.24 includes special items and amortization expense
  • Adjusted EPS of $0.63 exceeded guidance of $0.60, driven by better-than-projected margins in both segments
  • Full year adjusted EPS guidance of $2.40 maintained reflecting continued weak demand conditions, offset by adjusted EBITDA margins expected to increase from 15.6% to 16.0% for the year
  • Most recent Sustainability Report published, highlighting the company’s progress on ESG initiatives focused on People, Products, Planet and Performance

Headline financials

Total Revenue

$824M

Previous: $1.3B-36.7%
EPS (adj)

$0.63

Previous: $0.98-35.7%
Adjusted Gross Margin

29.2%

Previous: 23.3%+25.3%
Adjusted Operating Margin

10.2%

Previous: 10.3%-1.0%
Capital Expenditures

-$45.9M

Previous: -$34M-35.0%
Free Cash Flow

-$23.8M

Previous: $50.7M-146.9%
Net Income

$22.1M

Previous: $84.7M-73.9%
Operating Income

$62.3M

Previous: $130M-51.9%
Gross Profit

$241M

Previous: $304M-20.8%
Cash & Equivalents

$529M

Previous: $645M-18.0%
Total Assets

$6.05B

Previous: $5.04B+20.0%
Stock-Based Comp

$3.3M

Previous: $3.1M+6.5%

Revenue & EPS history

Avient · Revenue · Quarterly

$824M

Q2 2023-36.7%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Avient · $824M total across 3 segments · Q2 2023

  • Color, Additives and Inks
    $525M-19.2%
  • Specialty Engineered Materials
    $301M+23.3%
  • Corporate
    -$900K

Forward guidance

The company is maintaining its full year adjusted EPS guidance of $2.40 on lower estimated sales of $3.3 billion.

Tailwinds

  • Strength in composites
  • Improving margins
  • Cost reductions

Headwinds

  • Continued weak demand conditions
  • Consumers remain cautious with continued inflation
  • Rising interest rates
  • Sluggish demand in Europe
  • Customer inventory destocking

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 2023

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro