NYSE$AVNT

Avient Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported better-than-expected revenue and margin performance across all businesses and regions

Avient Corporation reported third quarter results for 2020 with adjusted EPS of $0.54, exceeding September projection of $0.51. Specialty Engineered Materials delivered record third quarter operating income of $24.7 million, a 27% increase over the prior year.

  • GAAP EPS from continuing operations of $0.02 compared to $0.30 in the prior year quarter.
  • Adjusted EPS of $0.54, excluding step up depreciation and amortization related to the Clariant Masterbatch acquisition, exceeded September projection of $0.51 on better than expected sales and margins in all segments and regions
  • Specialty Engineered Materials achieved record third quarter operating income of $24.7 million, a 27% increase over the prior year
  • Published comprehensive new Sustainability Report, highlighting the company’s most recent contributions in sustainability and its 2030 Sustainability Goals

Headline financials

Total Revenue

$925M

Previous: $705M+31.1%
EPS (adj)

$0.46

Previous: $0.44+4.5%
Adjusted Gross Margin

0.2%

No prior period
Adjusted Operating Margin

0.0%

No prior period
Capital Expenditures

-$38.6M

Previous: -$47.9M+19.4%
Free Cash Flow

-$36.9M

Previous: -$4.9M-653.1%
Net Income

$1.7M

Previous: $43M-96.0%
Operating Income

$33.5M

Previous: $43.1M-22.3%
Gross Profit

$210M

Previous: $161M+31.0%
Cash & Equivalents

$577M

Previous: $200M+189.2%
Total Assets

$4.71B

Previous: $2.95B+59.9%
Stock-Based Comp

$1.4M

Previous: $3M-53.3%

Revenue & EPS history

Avient · Revenue · Quarterly

$925M

Q3 2020+31.1%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Avient · $668M total across 2 segments · Q3 2020

  • Color, Additives and Inks
    $494M
  • Specialty Engineered Materials
    $174M

Forward guidance

As we start the fourth quarter, we see demand continuing to improve but recognize there remains uncertainty with how the ongoing pandemic recovery will unfold.

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 Q3 2020

Historical avgQ3 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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