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Highlights

  • Avanos reported a 4.3% increment in net sales in the first quarter of FY24 (Q1 FY24)
  • Adjusted EBITDA for Q1 FY24 amounted to USD 21.6 million, compared to USD 16.1 million in pcp
  • Net income from continuing operations reached USD 0.5 million from a net loss of USD 7.8 million in pcp

Avanos Medical, Inc. (NYSE: AVNS) specializes in medical devices, dedicated to providing solutions that address diverse healthcare requirements. The company serves healthcare providers and patients worldwide, boasting manufacturing facilities in both the United States and Mexico.

In the first quarter of FY24, the company recorded a 4.3% increase in net sales, primarily driven by robust demand and volume in the digestive health portfolio, notably from NeoMed neonatal and pediatric feeding solutions. Furthermore, favorable volume in the pain management and recovery portfolio, particularly from Game Ready and Diros, contributed to overall sales growth.

Moreover, adjusted EBITDA for Q1 FY24 amounted to USD 21.6 million, compared to USD 16.1 million in the previous corresponding period (pcp). Net income from continuing operations showed a significant improvement, reaching USD 0.5 million from a net loss of USD 7.8 million in pcp. Adjusted net income from continuing operations also increased to USD 10.1 million from USD 6.0 million in pcp.

Recent business update

The company has recently named Sigfrido Delgado as the senior vice president of integrated supply chain. In this role, Delgado will lead the teams dedicated to driving ongoing improvements across the company's global end-to-end supply chain capabilities.

Company outlook

According to AVNS's updated FY24 guidance, revenue from continuing operations is expected to fall within the range of USD 685 million to USD 705 million. Adjusted gross margins are forecasted to range from 59.5% to 60.5%, while adjusted diluted earnings per share from continuing operations are expected to range between USD 1.30 and USD 1.45.

Top 10 shareholders

The top 10 shareholders of AVNS collectively own approximately 61.31% of the company's total stake. BlackRock Institutional Trust Company, N.A. and The Vanguard Group, Inc. stand out as the largest shareholders, each holding significant stakes at approximately 14.78% and 11.74%, respectively.

Stock performance

The stock price of AVNS has surged by around 6.59% in the last three months whereas it has declined by around 6.57% in the past six months. Currently, the stock is trading below the average of its 52-week high of USD 26.56 and 52-week low price of USD 17.24.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 15, 2024. The reference data in this report has been partly sourced from EODHD/Others.