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) Down 1% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Avanos Medical (AVNS - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avanos Medical due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Avanos Medical Q4 Earnings and Revenues Top Estimates
Avanos Medical, Inc. reported adjusted earnings per share 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 earnings per share 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 up2.5% 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -12.2% due to these changes.
VGM Scores
Currently, Avanos Medical has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Avanos Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Avanos Medical (AVNS) Down 1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Avanos Medical (AVNS - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avanos Medical due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Avanos Medical Q4 Earnings and Revenues Top Estimates
Avanos Medical, Inc. reported adjusted earnings per share 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 earnings per share 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 up2.5% 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -12.2% due to these changes.
VGM Scores
Currently, Avanos Medical has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Avanos Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.