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Avanos (AVNS) Q1 Earnings Miss Estimates, Revenues Beat
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Avanos Medical, Inc. (AVNS - Free Report) reported adjusted earnings of 15 cents per share in first-quarter 2019, which missed the Zacks Consensus Estimate by 11.8%. Further, the bottom line plunged 80.3% year over year.
Revenues totaled $164.2 million, which beat the Zacks Consensus Estimate by 0.03% and increased nearly 5% on a year-over-year basis.
Q1 Segmental Analysis
Chronic Care
Net revenues at this segment amounted to $100 million, up 2.9% year over year.
Pain Management
The segment reported net revenues of $64.2 million. The metric rose 8.3% on a year-over-year basis.
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise
Adjusted gross profit came in at $101.1 million, up 9.9% from the prior-year quarter figure. Adjusted gross margin was 61.6% of net revenues, up 280 bps year over year.
Research and development expenses totaled $10.2 million, up 3% year over year. Selling, general and administrative expenses amounted to $106.4 million, up 23.1% year over year.
Adjusted operating profit in the first quarter was $10.4 million, soaring 395.2% on a year-over-year basis. Adjusted operating margin in the quarter was 6.3% of net revenues, up 500 bps from the year-ago quarter.
Financial Update
As of Mar 31, 2019, cash and cash equivalents totaled $348.3 million, down 9.4% from 2018-end level.
Net cash from operating activities for the three months ended Mar 31, 2019, amounted to ($23.1) million, compared with $26.3 million from the prior-year quarter.
Guidance Reaffirmed
For 2019, Avanos projects adjusted earnings per share to range between $1.15 and $1.35.
Avanos expects 2019 net revenues to increase 6-8% year over year, on a constant-currency basis (including Game Ready).
The adjusted effective tax rate is estimated in the range of 23-25%.
The company anticipates foreign currency translation to be even compared with the year-ago quarter.
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
DENTSPLY reported adjusted earnings per share (EPS) of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million.
CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million.
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Avanos (AVNS) Q1 Earnings Miss Estimates, Revenues Beat
Avanos Medical, Inc. (AVNS - Free Report) reported adjusted earnings of 15 cents per share in first-quarter 2019, which missed the Zacks Consensus Estimate by 11.8%. Further, the bottom line plunged 80.3% year over year.
Revenues totaled $164.2 million, which beat the Zacks Consensus Estimate by 0.03% and increased nearly 5% on a year-over-year basis.
Q1 Segmental Analysis
Chronic Care
Net revenues at this segment amounted to $100 million, up 2.9% year over year.
Pain Management
The segment reported net revenues of $64.2 million. The metric rose 8.3% on a year-over-year basis.
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise | AVANOS MEDICAL, INC. Quote
Margin Analysis
Adjusted gross profit came in at $101.1 million, up 9.9% from the prior-year quarter figure. Adjusted gross margin was 61.6% of net revenues, up 280 bps year over year.
Research and development expenses totaled $10.2 million, up 3% year over year. Selling, general and administrative expenses amounted to $106.4 million, up 23.1% year over year.
Adjusted operating profit in the first quarter was $10.4 million, soaring 395.2% on a year-over-year basis. Adjusted operating margin in the quarter was 6.3% of net revenues, up 500 bps from the year-ago quarter.
Financial Update
As of Mar 31, 2019, cash and cash equivalents totaled $348.3 million, down 9.4% from 2018-end level.
Net cash from operating activities for the three months ended Mar 31, 2019, amounted to ($23.1) million, compared with $26.3 million from the prior-year quarter.
Guidance Reaffirmed
For 2019, Avanos projects adjusted earnings per share to range between $1.15 and $1.35.
Avanos expects 2019 net revenues to increase 6-8% year over year, on a constant-currency basis (including Game Ready).
The adjusted effective tax rate is estimated in the range of 23-25%.
The company anticipates foreign currency translation to be even compared with the year-ago quarter.
Zacks Rank
Currently, Avanos carries a Zacks Rank #4 (Sell).
Earnings of MedTech Majors at a Glance
Some better-ranked stocks which reported solid results this earning season are Stryker Corporation (SYK - Free Report) , DENTSPLY SIRONA Inc. (XRAY - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
DENTSPLY reported adjusted earnings per share (EPS) of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million.
CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119%and +164%in as little as 1 month. The stocks in this report could perform even better.
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