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Avanos Medical (AVNS) Q4 Earnings and Revenues Top Estimates
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Avanos Medical, Inc. (AVNS - Free Report) reported adjusted earnings per share (EPS) of 28 cents for fourth-quarter 2020, beating the Zacks Consensus Estimate of 22 cents by 27.3%. However, the bottom line fell 17.6% year over year.
For 2020, adjusted EPS came in at 79 cents, beating the Zacks Consensus Estimate of 72 cents by 9.7%. The bottomline, however, fell 26.2% year over year.
Revenues
Revenues for the quarter were $185 million, which beat the Zacks Consensus Estimate by 0.7%. However, the top line dipped 2.5% on a year-over-year basis.
For 2020, revenues summed $714.8 million, beating the Zacks Consensus Estimate by a marginal 0.1%. Also, the top line inched up 2.5% on a year-over-year basis.
Q4 Segmental Analysis
Chronic Care
Net revenues of $116 million rose 2.3% year over year.
Pain Management
Net revenues of $69 million declined 9.7% on a year-over-year basis.
Margin Analysis
Gross profit was $89 million, down 18.9% from the prior-year quarter. Gross margin was 48.1% of net revenues, down 974 bps year over year.
Total adjusted operating cost came in at $92 million, down 18% year over year.
Adjusted operating loss in the fourth quarter was $3 million, wider than adjusted operating loss of $2.3 million in the year-ago quarter.
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise
As of Dec 31, 2020, cash and cash equivalents totaled $111.5 million compared with $205.3 million in the year-ago period.
Cumulative net cash used in operating activities at the end of the fourth quarter totaled $2.5 million compared with net cash utilized in operating activities of $74.5 million in the prior-year quarter.
Guidance
In view of the ongoing uncertainty related to the COVID-19 pandemic, the company will not be issuing its 2021 guidance. This is because at this point,it is unable to fully quantify the scope or duration of the pandemic impact on its financial results.
Summing Up
Avanos exited the fourth quarter on a strong note. The company continues to gain from its core segment Chronic Care. CORPAK and NeoMed products contributed strongly to earnings. The acquisitions of NeoMed and Summit drove 4% growth in the quarter. Further, a rise in global demand forRespiratory Health owing to the pandemic aided the quarterly performance.
However, contraction in gross margin remains a woe. Also, the company’s Pain Management unit performed weakly. The company also witnessed lower volume in Acute Pain and Interventional Pain due to a fall in elective procedures. Moreover, being a pure-play MedTech company, it faces stiff competition from other industry players.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of a couple of cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Avanos Medical (AVNS) Q4 Earnings and Revenues Top Estimates
Avanos Medical, Inc. (AVNS - Free Report) reported adjusted earnings per share (EPS) of 28 cents for fourth-quarter 2020, beating the Zacks Consensus Estimate of 22 cents by 27.3%. However, the bottom line fell 17.6% year over year.
For 2020, adjusted EPS came in at 79 cents, beating the Zacks Consensus Estimate of 72 cents by 9.7%. The bottomline, however, fell 26.2% year over year.
Revenues
Revenues for the quarter were $185 million, which beat the Zacks Consensus Estimate by 0.7%. However, the top line dipped 2.5% on a year-over-year basis.
For 2020, revenues summed $714.8 million, beating the Zacks Consensus Estimate by a marginal 0.1%. Also, the top line inched up 2.5% on a year-over-year basis.
Q4 Segmental Analysis
Chronic Care
Net revenues of $116 million rose 2.3% year over year.
Pain Management
Net revenues of $69 million declined 9.7% on a year-over-year basis.
Margin Analysis
Gross profit was $89 million, down 18.9% from the prior-year quarter. Gross margin was 48.1% of net revenues, down 974 bps year over year.
Total adjusted operating cost came in at $92 million, down 18% year over year.
Adjusted operating loss in the fourth quarter was $3 million, wider than adjusted operating loss of $2.3 million in the year-ago quarter.
AVANOS MEDICAL, INC. Price, Consensus and EPS Surprise
AVANOS MEDICAL, INC. price-consensus-eps-surprise-chart | AVANOS MEDICAL, INC. Quote
Financial Update
As of Dec 31, 2020, cash and cash equivalents totaled $111.5 million compared with $205.3 million in the year-ago period.
Cumulative net cash used in operating activities at the end of the fourth quarter totaled $2.5 million compared with net cash utilized in operating activities of $74.5 million in the prior-year quarter.
Guidance
In view of the ongoing uncertainty related to the COVID-19 pandemic, the company will not be issuing its 2021 guidance. This is because at this point,it is unable to fully quantify the scope or duration of the pandemic impact on its financial results.
Summing Up
Avanos exited the fourth quarter on a strong note. The company continues to gain from its core segment Chronic Care. CORPAK and NeoMed products contributed strongly to earnings. The acquisitions of NeoMed and Summit drove 4% growth in the quarter. Further, a rise in global demand forRespiratory Health owing to the pandemic aided the quarterly performance.
However, contraction in gross margin remains a woe. Also, the company’s Pain Management unit performed weakly. The company also witnessed lower volume in Acute Pain and Interventional Pain due to a fall in elective procedures. 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 #4 (Sell).
Some better-ranked stocks in the broader medical space that already announced quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each presently carrying a Zacks Rank#2 (Buy).You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of a couple of cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>