A Look Ahead: Avantor's Earnings Forecast

Avantor AVTR is gearing up to announce its quarterly earnings on Friday, 2024-10-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Avantor will report an earnings per share (EPS) of $0.25.

The announcement from Avantor is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

Last quarter the company beat EPS by $0.02, which was followed by a 0.0% drop in the share price the next day.

Here's a look at Avantor's past performance and the resulting price change:

Tracking Avantor's Stock Performance

Shares of Avantor were trading at $23.72 as of October 23. Over the last 52-week period, shares are up 32.11%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Avantor

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Avantor.

Analysts have provided Avantor with 9 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $29.67, suggesting a potential 25.08% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Revvity, Waters and Bio-Techne, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Neutral trajectory for Revvity, with an average 1-year price target of $132.0, implying a potential 456.49% upside.
• As per analysts' assessments, Waters is favoring an Neutral trajectory, with an average 1-year price target of $351.0, suggesting a potential 1379.76% upside.
• As per analysts' assessments, Bio-Techne is favoring an Buy trajectory, with an average 1-year price target of $82.33, suggesting a potential 247.09% upside.

Overview of Peer Analysis

Within the peer analysis summary, vital metrics for Revvity, Waters and Bio-Techne are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Avantor is positioned in the middle among its peers for revenue growth, with a slight negative trend. It ranks at the top for gross profit, indicating strong operational efficiency. However, its return on equity is lower compared to one peer but higher than the other two. Overall, Avantor demonstrates a balanced performance across key financial metrics when compared to its peers.

Discovering Avantor: A Closer Look

Avantor Inc provider of products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. The company has three geographic segments: the Americas, Europe, and AMEA. The company's product group consists of Equipment & instrumentation, Services & specialty procurement, Proprietary materials & consumables, and Third-party materials & consumables. Materials & consumables include high-purity chemicals and reagents, lab products and supplies, specialized formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, and education and microbiology and clinical trial kits, peristaltic pumps and fluid handling tips.

Understanding the Numbers: Avantor's Finances

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Avantor faced challenges, resulting in a decline of approximately -2.36% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Avantor's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.46% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Avantor's ROE stands out, surpassing industry averages. With an impressive ROE of 1.73%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Avantor's ROA stands out, surpassing industry averages. With an impressive ROA of 0.73%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Avantor's debt-to-equity ratio stands notably higher than the industry average, reaching 0.94. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Avantor visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.