NYSE$AVNT

Avient Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Avient's Q4 2023 earnings exceeded expectations, driven by improved margins and cost control.

Avient Corporation reported a GAAP EPS of $0.30 and an adjusted EPS of $0.52 for the fourth quarter of 2023. The adjusted EPS increased by 24% compared to the prior year, driven by improved margins and cost reduction actions. The company anticipates demand strengthening as it progresses through the year.

  • GAAP EPS was $0.30, compared to $(0.19) in the prior year.
  • Adjusted EPS was $0.52, exceeding guidance of $0.47.
  • Adjusted EPS increased 24% over the prior year pro forma adjusted EPS.
  • Customer destocking was less impactful during the quarter.

Headline financials

Total Revenue

$719M

Previous: $790M-9.0%
EPS (adj)

$0.52

Previous: $0.39+33.3%
Capital Expenditures

-$44.4M

Previous: $50.4M-188.1%
Net Income

$27.8M

Previous: -$16.6M+267.5%
Operating Income

$43.1M

Previous: $400K+10675.0%
Gross Profit

$209M

Previous: $172M+21.5%
Stock-Based Comp

$3.5M

Previous: $3.7M-5.4%

Revenue & EPS history

Avient · Revenue · Quarterly

$719M

Q4 2023-9%vs Q4 2022
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

Avient expects demand to continue to improve in packaging and consumer end markets as destocking comes to an end. They anticipate first quarter adjusted EPS of $0.68, up 8% from $0.63 in 2023. For the full year, they anticipate demand strengthening as they progress through the year as destocking fully comes to an end, interest rates begin to abate and consumer sentiment improves.

Tailwinds

  • Demand to continue to improve in packaging
  • Demand to continue to improve in consumer end markets
  • Destocking comes to an end
  • Sustainable solutions portfolio expands
  • Demand for Dyneema® in defense applications is expected to be strong

Headwinds

  • Destocking in healthcare
  • Destocking in telecommunications
  • Weak demand in transportation
  • Weak demand in building & construction
  • Higher interest rates

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 2023

Historical avgQ4 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%

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