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Avient's (AVNT) Q4 Earnings and Sales Surpass Estimates
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Avient Corporation (AVNT - Free Report) logged earnings (on a reported basis) of 32 cents per share for fourth-quarter 2021, down from 81 cents per share in the year-ago quarter.
Barring one-time items, earnings came in at 58 cents per share for the reported quarter, surpassing the Zacks Consensus Estimate of 55 cents.
The company recorded sales of $1,201.5 million, up 21% from the year-ago quarter. It also beat the Zacks Consensus Estimate of $1,148.3 million. It saw higher sales across its business segments in the quarter. Price increases more than offset the impacts from raw material and supply-chain disruptions.
Avient Corporation Price, Consensus and EPS Surprise
The company’s Color, Additives and Inks segment recorded sales of $581.3 million in the reported quarter, up around 11% year over year.
Sales from the Specialty Engineered Materials unit went up 19% year over year to $228.2 million.
The Distribution segment raked in sales of $425 million in the quarter, up 39% year over year.
FY21 Results
Earnings for full-year 2021 were $2.51 per share, up from $1.46 per share a year ago. Adjusted earnings jumped 58% year over year to $3.05 per share. Net sales went up 27% year over year to $4,818.8 million.
The company benefited from higher demand for sustainable solutions, healthcare applications and composites technologies amid significant headwinds from raw material inflation and supply-chain disruptions, and labor shortages.
Financials
Avient had cash and cash equivalents of $601.2 million at the end of 2021, down around 7% year over year. Long-term debt was $1,850.3 million, essentially flat year over year.
The company also generated operating cash flow of $233.8 million and free cash flow of $133.2 million in 2021.
Outlook
Avient expects sales of roughly $5.1 billion for 2022. It also sees adjusted earnings of $3.50 per share for the full year, implying 15% year-over-year growth. Earnings are expected to be driven by growth in sustainable solutions and increased synergy realization. Although the company envisions raw material and labor shortages and cost inflation to continue, it expects to manage these challenges and deliver another record year of growth.
Price Performance
Avient’s shares have risen 19.8% in a year compared with a 7.2% rise recorded by the industry.
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Zacks Rank & Key Picks
Avient currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 62% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.5% for the current year. ALB's consensus estimate for the current year has been revised 5.6% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 43% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 66% in a year.
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Avient's (AVNT) Q4 Earnings and Sales Surpass Estimates
Avient Corporation (AVNT - Free Report) logged earnings (on a reported basis) of 32 cents per share for fourth-quarter 2021, down from 81 cents per share in the year-ago quarter.
Barring one-time items, earnings came in at 58 cents per share for the reported quarter, surpassing the Zacks Consensus Estimate of 55 cents.
The company recorded sales of $1,201.5 million, up 21% from the year-ago quarter. It also beat the Zacks Consensus Estimate of $1,148.3 million. It saw higher sales across its business segments in the quarter. Price increases more than offset the impacts from raw material and supply-chain disruptions.
Avient Corporation Price, Consensus and EPS Surprise
Avient Corporation price-consensus-eps-surprise-chart | Avient Corporation Quote
Segment Highlights
The company’s Color, Additives and Inks segment recorded sales of $581.3 million in the reported quarter, up around 11% year over year.
Sales from the Specialty Engineered Materials unit went up 19% year over year to $228.2 million.
The Distribution segment raked in sales of $425 million in the quarter, up 39% year over year.
FY21 Results
Earnings for full-year 2021 were $2.51 per share, up from $1.46 per share a year ago. Adjusted earnings jumped 58% year over year to $3.05 per share. Net sales went up 27% year over year to $4,818.8 million.
The company benefited from higher demand for sustainable solutions, healthcare applications and composites technologies amid significant headwinds from raw material inflation and supply-chain disruptions, and labor shortages.
Financials
Avient had cash and cash equivalents of $601.2 million at the end of 2021, down around 7% year over year. Long-term debt was $1,850.3 million, essentially flat year over year.
The company also generated operating cash flow of $233.8 million and free cash flow of $133.2 million in 2021.
Outlook
Avient expects sales of roughly $5.1 billion for 2022. It also sees adjusted earnings of $3.50 per share for the full year, implying 15% year-over-year growth. Earnings are expected to be driven by growth in sustainable solutions and increased synergy realization. Although the company envisions raw material and labor shortages and cost inflation to continue, it expects to manage these challenges and deliver another record year of growth.
Price Performance
Avient’s shares have risen 19.8% in a year compared with a 7.2% rise recorded by the industry.
Zacks Rank & Key Picks
Avient currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 62% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.5% for the current year. ALB's consensus estimate for the current year has been revised 5.6% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 43% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 66% in a year.