NYSE$AVNT

Avient Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a 3% increase in sales and a 21% increase in adjusted EPS, exceeding guidance.

Avient reported a strong second quarter with sales growth and adjusted EPS exceeding expectations. Consolidated sales expanded for the first time in seven quarters, with contributions from both Color, Additives and Inks, and Specialty Engineered Materials segments. The company is increasing its full-year adjusted EPS guidance range.

  • Second quarter sales grew to $850 million, a 3% increase over the prior year quarter.
  • Second quarter GAAP EPS from continuing operations was $0.36 compared to $0.24 in the prior year quarter.
  • Second quarter adjusted EPS of $0.76 exceeded guidance of $0.71 and increased 21% over prior year quarter.
  • The company is increasing 2024 full-year adjusted EPS guidance range to $2.55 to $2.70, from prior guidance of $2.50 to $2.65.

Headline financials

Total Revenue

$850M

Previous: $824M+3.1%
EPS

$0.36

Previous: $0.63-42.9%
Adjusted EBITDA Margin

16.9%

No prior period
Capital Expenditures

-$55.8M

Previous: -$45.9M-21.6%
Free Cash Flow

-$22.2M

Previous: -$23.8M+6.7%
Net Income

$33.6M

Previous: $22.1M+52.0%
Operating Income

$72.5M

Previous: $62.3M+16.4%
Gross Profit

$258M

Previous: $241M+7.0%
Total Assets

$5.91B

Previous: $6.05B-2.4%
Stock-Based Comp

$5.7M

Previous: $3.3M+72.7%

Revenue & EPS history

Avient · Revenue · Quarterly

$850M

Q2 2024+3.1%vs Q2 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

The company expects adjusted EPS of $0.62 for the third quarter, a 9% increase over the prior year. Revised full-year guidance for adjusted EBITDA is now $515 million to $540 million, and the revised range for adjusted EPS is between $2.55 to $2.70.

Tailwinds

  • Anticipate continued year-over-year organic sales growth.
  • Both segments growing earnings.
  • Growth momentum to continue.
  • Teams focused on providing innovative materials and processing solutions.
  • Enable our customers' challenges to enable a sustainable world.

Headwinds

  • Demand outlook for the second half of the year remains largely unchanged from our previous outlook in May.
  • disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future.
  • the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks
  • disruptions or inefficiencies in our supply chain, logistics, or operations
  • changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change

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 2024

Historical avgQ2 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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