NYSE$AVTR

Avantor Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported financial results for the quarter and year ended December 31, 2019.

Avantor's Q4 2019 results showed strong sales, particularly in the biopharma business, margin expansion, and robust cash flow generation. Net sales increased by 3.4% to $1.52 billion, net income increased to $70.6 million, and adjusted EPS increased 89.9% to $0.19.

  • Net sales reached $1.52 billion with 3.4% increase.
  • Net income increased to $70.6 million.
  • Adjusted EBITDA increased 11.8% to $263.6 million.
  • Adjusted EPS increased 89.9% to $0.19.

Headline financials

Total Revenue

$1.52B

Previous: $1.47B+3.4%
EPS (adj)

$0.19

Previous: -$2.69+107.1%
Adjusted EBITDA

$264M

No prior period
Capital Expenditures

$12.1M

Previous: $5.4M+124.1%
Free Cash Flow

$74.9M

Previous: $64.5M+16.1%
Net Income

$70.6M

Previous: -$53.3M+232.5%
Operating Income

$152M

Previous: $99.3M+53.0%
Gross Profit

$480M

Previous: $433M+11.0%
Cash & Equivalents

$187M

Previous: $185M+1.1%
Total Assets

$9.77B

Previous: $9.91B-1.4%
Stock-Based Comp

$10.5M

Previous: $3.9M+169.2%

Revenue & EPS history

Avantor · Revenue · Quarterly

$1.52B

Q4 2019+3.4%vs Q4 2018
Beat estimate in 8 of 10 quarters(80%)
ActualEstimate

Forward guidance

The Company projects organic sales to be up 4% to 6% for 2020. Adjusted EBITDA is projected to be in the range of $1.090-1.135 billion, or an increase of 6% to 10%. Guidance for full-year adjusted EPS is $0.74-0.79, up 27-36%. Free cash flow is expected to be in the range of $450-500 million, up 50-65% from 2019.

Tailwinds

  • Organic sales to be up 4% to 6% for 2020
  • Adjusted EBITDA is projected to be in the range of $1.090-1.135 billion, or an increase of 6% to 10%
  • Full-year adjusted EPS is $0.74-0.79, up 27-36%
  • Free cash flow is expected to be in the range of $450-500 million, up 50-65% from 2019.
  • Current foreign exchange rates (e.g., Euro 1.11)

Headwinds

  • The timing and cost of future restructuring activities
  • Charges related to the early retirement of debt
  • Changes in tax rates
  • Other non-recurring items.
  • Factors described in “Risk Factors” in our Registration Statement on Form S-1 (File No. 333-229578) and our Form 10-K

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

-0.6%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.3%

Avg return

30 days after

47%

15 / 32 earnings

Positive

+21.7%

Q1 2020

Best reaction

-23.2%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+1.5%+16.0%
Q4 2025-13.6%-17.6%-28.9%
Q3 2025-23.2%-22.5%-22.2%
Q1 2025-16.6%-16.2%-18.1%
Q4 2024-11.7%-16.8%-19.4%
Q3 2024-2.7%-3.5%-10.7%
Q2 2024+15.0%+17.2%+12.4%
Q1 2024-4.3%-2.9%-4.0%
Q4 2023+8.6%+7.3%+13.3%
Q3 2023-12.1%-10.8%+4.1%
Q2 2023-9.9%-7.9%-4.6%
Q1 2023+8.0%+7.8%+10.2%
Q4 2022-5.9%-1.9%+0.9%
Q3 2022-1.8%-6.1%+4.4%
Q2 2022-8.6%-7.9%-19.6%
Q1 2022+8.4%+7.4%+12.1%
Q4 2021-2.9%-3.6%-13.5%
Q3 2021+9.3%+7.9%+7.3%
Q2 2021+0.3%+0.9%+4.8%
Q1 2021-1.4%-5.7%-3.0%
Q4 2020-2.2%-1.9%-9.9%
Q3 2020-5.5%-5.9%+5.3%
Q2 2020+16.6%+18.3%+16.0%
Q1 2020+21.7%+22.8%+37.4%
Q4 2019-11.4%-7.5%-21.5%
Q3 2018+2.7%-4.2%+17.4%
Q3 2019+2.7%-4.2%+17.4%
Q2 2019+4.2%+5.2%+7.3%
Q1 2018+4.2%+5.2%+7.3%
Q2 2018+4.2%+5.2%+7.3%
Q1 2019+4.2%+5.2%+7.3%
Q4 2018+4.2%+5.2%+7.3%
Q4 2017

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