We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avanos Medical (AVNS) Q1 Earnings and Revenues Top Estimates
Read MoreHide Full Article
Avanos Medical, Inc. (AVNS - Free Report) reported adjusted earnings per share (EPS) of 23 cents for first-quarter 2021, beating the Zacks Consensus Estimate by 27.8%. Also, the bottom line rose 43.8% year over year.
Revenues
Revenues for the quarter were $180.7 million, which beat the Zacks Consensus Estimate by 2.3%. Moreover, the top line inched up a marginal 0.2% on a year-over-year basis.
Q1 Segmental Analysis
Chronic Care
Net revenues of $121.1 million rose 4.7% year over year.
Pain Management
Net revenues of $59.6 million declined 7.9% on a year-over-year basis.
Margin Analysis
Gross profit was $91 million, down 10.6% from the prior-year quarter. Gross margin was 50.5% of net revenues, down 607 bps year over year.
Adjusted operating profit in the first quarter was $10 million, up from $1.6 million in the year-ago quarter. Adjusted operating margin came in at 5.3%, expanding 443 bps year over year.
Financial Update
The company exited the first quarter of 2021 with cash and cash equivalents worth $100.1 million compared with $111.5 million in the fourth quarter of 2020.
Net cash used in operating activities at the end of the first quarter totaled $3.3 million compared with net cash utilized in operating activities of $5.8 million in the prior-year quarter.
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise
The company projected 2021 net sales to increase 2-4% on constant currency basis from the 2020 reported level. The Zacks Consensus Estimate for revenues is pegged at $736.5 million.
The adjusted EPS for 2021 is projected between $1.10 and $1.25. The Zacks Consensus Estimate for the same stands at $1.19.
Summing Up
Avanos exited the first quarter on a strong note. The company continues to gain from its core segment Chronic Care. Also, CORPAK and NeoMed products contributed strongly to its earnings. Further, a rise in global demand for Respiratory Health amid the pandemic aided the company’s quarterly performance. The expansion in adjusted operating margin is another plus.
However, contraction in gross margin remains a woe. Also, the company’s Pain Management unit performed weakly. Moreover, being a pure-play MedTech company, it faces stiff competition from other industry players.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Avanos Medical (AVNS) Q1 Earnings and Revenues Top Estimates
Avanos Medical, Inc. (AVNS - Free Report) reported adjusted earnings per share (EPS) of 23 cents for first-quarter 2021, beating the Zacks Consensus Estimate by 27.8%. Also, the bottom line rose 43.8% year over year.
Revenues
Revenues for the quarter were $180.7 million, which beat the Zacks Consensus Estimate by 2.3%. Moreover, the top line inched up a marginal 0.2% on a year-over-year basis.
Q1 Segmental Analysis
Chronic Care
Net revenues of $121.1 million rose 4.7% year over year.
Pain Management
Net revenues of $59.6 million declined 7.9% on a year-over-year basis.
Margin Analysis
Gross profit was $91 million, down 10.6% from the prior-year quarter. Gross margin was 50.5% of net revenues, down 607 bps year over year.
Adjusted operating profit in the first quarter was $10 million, up from $1.6 million in the year-ago quarter. Adjusted operating margin came in at 5.3%, expanding 443 bps year over year.
Financial Update
The company exited the first quarter of 2021 with cash and cash equivalents worth $100.1 million compared with $111.5 million in the fourth quarter of 2020.
Net cash used in operating activities at the end of the first quarter totaled $3.3 million compared with net cash utilized in operating activities of $5.8 million in the prior-year quarter.
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise
AVANOS MEDICAL, INC. price-consensus-eps-surprise-chart | AVANOS MEDICAL, INC. Quote
Guidance
The company projected 2021 net sales to increase 2-4% on constant currency basis from the 2020 reported level. The Zacks Consensus Estimate for revenues is pegged at $736.5 million.
The adjusted EPS for 2021 is projected between $1.10 and $1.25. The Zacks Consensus Estimate for the same stands at $1.19.
Summing Up
Avanos exited the first quarter on a strong note. The company continues to gain from its core segment Chronic Care. Also, CORPAK and NeoMed products contributed strongly to its earnings. Further, a rise in global demand for Respiratory Health amid the pandemic aided the company’s quarterly performance. The expansion in adjusted operating margin is another plus.
However, contraction in gross margin remains a woe. Also, the company’s Pain Management unit performed weakly. Moreover, being a pure-play MedTech company, it faces stiff competition from other industry players.
Zacks Rank and Key Picks
Avanos currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Boston Scientific Corp. (BSX - Free Report) , Integer Holdings Corp. (ITGR - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>