NYSE$AVNT

Avient Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Achieved better-than-expected results driven by the Specialty Engineered Materials segment, including record operating income from Advanced Composites platform.

PolyOne Corporation reported better-than-expected fourth-quarter results, driven by the Specialty Engineered Materials segment. The company's adjusted EPS for the full year increased by 12%, marking the tenth consecutive year of adjusted EPS growth. The company also announced transformative portfolio improvements by divesting the Performance Products and Solutions (PP&S) segment and signing a definitive agreement to acquire Clariant Masterbatch business.

  • GAAP EPS from continuing operations was $0.08, compared to a loss of $0.02 in the prior year's fourth quarter.
  • Adjusted EPS from continuing operations increased to $0.34 from $0.24 in the prior year's fourth quarter.
  • The Specialty Engineered Materials segment drove the better-than-expected results, including record operating income from the Advanced Composites platform.
  • The company reported 12% adjusted EPS growth for the full year.

Headline financials

Total Revenue

$659M

Previous: $834M-21.0%
EPS (adj)

$0.34

Previous: $0.41-17.1%
Adjusted Gross Margin

23.2%

Previous: 21.3%+8.9%
Adjusted Operating Margin

6.8%

Previous: 5.9%+15.3%
Capital Expenditures

$33.8M

Previous: $24.8M+36.3%
Free Cash Flow

$68.4M

Previous: $58M+17.9%
Net Income

$6.4M

Previous: $11.4M-43.9%
Operating Income

$20.5M

Previous: $47M-56.4%
Gross Profit

$153M

Previous: $165M-7.1%
Cash & Equivalents

$865M

Previous: $171M+406.0%
Total Assets

$3.27B

Previous: $2.72B+19.9%
Stock-Based Comp

$3.6M

Previous: $2.6M+38.5%

Revenue & EPS history

Avient · Revenue · Quarterly

$659M

Q4 2019-21%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Avient · $386M total across 3 segments · Q4 2019

  • Color, Additives and Inks
    $227M-5.9%
  • Specialty Engineered Materials
    $178M+17.9%
  • Corporate
    -$18M

Forward guidance

The company embarks on the new year with clear momentum and confidence in its ability to deliver double-digit adjusted EPS growth in 2020 and beyond. With a more specialty portfolio and less exposure to cyclical end markets, the company believes its best days are ahead.

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 Q4 2019

Historical avgQ4 2019

+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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