NYSE$AVNT

Avient Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Avient's Q4 2022 results were announced, exceeding prior adjusted EPS guidance due to strong orders for personal protection products and cost reductions, despite global demand challenges.

Avient Corporation reported a GAAP EPS from continuing operations of $(0.19) and an adjusted EPS of $0.39, which exceeded prior guidance. The company focused on cost control and working capital reduction, leading to increased free cash flow and debt reduction. Portfolio enhancements and strategic investments have positioned the company for long-term value creation.

  • Fourth quarter adjusted EPS from continuing operations of $0.39 exceeded prior guidance due to better-than-expected orders and cost reductions.
  • Strong working capital performance resulted in cash flow from operations of approximately $400 million for 2022 and full year free cash flow of approximately $290 million.
  • An additional $200 million of debt was paid down, improving the year-end net debt-to-adjusted EBITDA to 2.9x.
  • The company earned its fourth Great Place to Work® certification, achieving the highest employee engagement scores in its history.

Headline financials

Total Revenue

$790M

Previous: $1.2B-34.2%
EPS (adj)

$0.39

Previous: $0.58-32.8%
Adjusted Gross Margin

217500000.0%

No prior period
Adjusted Operating Margin

60300000.0%

No prior period
Capital Expenditures

$50.4M

Previous: $37.9M+33.0%
Free Cash Flow

$293M

Previous: $85.9M+241.0%
Net Income

-$16.6M

Previous: $29.8M-155.7%
Operating Income

$400K

Previous: $74M-99.5%
Gross Profit

$172M

Previous: $253M-32.0%
Cash & Equivalents

$641M

Previous: $601M+6.6%
Total Assets

$6.09B

Previous: $5B+21.8%
Stock-Based Comp

$3.7M

Previous: $2.8M+32.1%

Revenue & EPS history

Avient · Revenue · Quarterly

$790M

Q4 2022-34.2%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Avient · $790M total across 3 segments · Q4 2022

  • Color, Additives and Inks
    $491M-15.6%
  • Specialty Engineered Materials
    $301M+32.9%
  • Corporate
    -$1.2M-140.0%

Forward guidance

Avient anticipates full-year 2023 sales of $3.45 billion, adjusted EBITDA of $530 million, and adjusted EPS of $2.40.

Tailwinds

  • Focus on executing strategy, including integrating the APM business.
  • Prudent and proactive optimization of cost structure.
  • Restructuring actions to accelerate the remaining synergies associated with the Clariant Color acquisition, particularly in Europe.
  • Expect conditions to improve in the second half of the year.
  • Driven by performance in key growth drivers, particularly sustainable solutions and composites.

Headwinds

  • Expect to experience similar demand conditions as in the fourth quarter of 2022 in Q1.
  • Driven by negative consumer sentiment.
  • Rising interest rates.
  • Slow restart of China.
  • Macro-economic uncertainty

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 2022

Historical avgQ4 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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