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Why Is Avantor (AVTR) Up 13% Since Last Earnings Report?
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A month has gone by since the last earnings report for Avantor, Inc. (AVTR - Free Report) . Shares have added about 13% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avantor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Avantor reported first-quarter 2026 adjusted earnings per share of 17 cents, down 26.1% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 6.3%.
GAAP earnings per share for the quarter was 6 cents, down from 9 cents per share in the prior-year quarter.
AVTR's Results In Details
Revenues totaled $1.58 billion in the reported quarter, flat year over year. The metric beat the Zacks Consensus Estimate by 2.1%.
Avantor's foreign currency translation had a positive impact of 4.1%, resulting in a 4.1% sales decline on an organic basis.
Avantor’s Segmental Analysis
Laboratory Solutions (VWR Distribution & Services)
Net sales in the Laboratory Solutions segment totaled $1.15 billion in the first quarter, down 5% organically year over year. The decline was primarily driven by lower volumes amid continued softness in end markets, particularly in Europe, along with a modest impact from adverse winter weather in the United States. This figure compares with our segmental projection of $1.05 billion.
Despite the year-over-year decline, management indicated that the segment is stabilizing, with performance largely in line with expectations. The VWR e-commerce platform showed encouraging trends, with improvements in traffic, conversions and revenues following recent digital upgrades and the relaunch of vwr.com. However, margins were pressured by lower volumes, pricing dynamics and higher freight costs. The company expects growth to improve gradually through 2026, with a return to positive organic growth in the second half.
Bioscience Production (Bioscience & Medtech Products - BMP)
The Bioscience Production segment reported net sales of $431 million, reflecting a 2% organic decline year over year. The performance exceeded management expectations, supported by strong execution in process chemicals and NuSil. This figure compares with our segmental projection of $557 million.
Within the segment, process chemicals delivered double-digit organic growth, driven by improved operations and strong order trends. However, fluid handling and NuSil declined by double digits due to tough prior-year comparisons, while research and specialty chemicals saw a slight decline. Management noted that normalization of customer ordering patterns in certain businesses acted as a mid-single-digit headwind to growth in the quarter.
Operationally, the segment showed signs of improvement, with reduced back orders and a strong book-to-bill ratio of above 1.1x, indicating healthy demand. Margins declined year over year due to lower volumes, unfavorable mix and inventory-related headwinds. Management expects growth to hit its lowest point in the second quarter and improve in the second half of 2026.
AVTR’s Margin Analysis
In the quarter under review, Avantor’s gross profit declined 6.4% year over year to $500.7 million. The gross margin contracted 210 basis points (bps) to 31.7%.
Selling, general and administrative expenses increased 3.5% year over year to $401.2 million.
Adjusted operating profit totaled $190.6 million, down 21.5% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 330 bps to 12.1%.
Avantor’s Financial Position
Avantor exited the first quarter of 2026 with cash and cash equivalents of $279.3 million compared with $365.4 million at the end of the fourth quarter of 2025. Total debt at the end of the first quarter of 2026 was $3.82 billion compared with $3.95 billion at the end of the fourth quarter of 2025.
Net cash provided by operating activities at the end of the first quarter of 2026 was $58.7 million compared with $109.3 million a year ago.
AVTR’s 2026 Guidance
Avantor reaffirmed the fiscal 2026 financial guidance it provided during its fourth-quarter 2025 earnings call.
Per the guidance, the company projects organic revenue growth of negative 2.5% to negative 0.5%, with growth in the VWR distribution business expected to modestly outpace that of Bioscience and Medtech Products. The company expects adjusted earnings per share to lie in the range of 77 cents to 83 cents. The Zacks Consensus Estimate is pegged at 79 cents.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Avantor has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. 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. Interestingly, Avantor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Avantor belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Elevance Health reported revenues of $49.49 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $12.58 for the same period compares with $11.97 a year ago.
For the current quarter, Elevance Health is expected to post earnings of $6.16 per share, indicating a change of -30.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.5% over the last 30 days.
Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Avantor (AVTR) Up 13% Since Last Earnings Report?
A month has gone by since the last earnings report for Avantor, Inc. (AVTR - Free Report) . Shares have added about 13% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avantor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
AVTR Q1 Earnings & Revenues Beat Estimates, Margins Decline
Avantor reported first-quarter 2026 adjusted earnings per share of 17 cents, down 26.1% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 6.3%.
GAAP earnings per share for the quarter was 6 cents, down from 9 cents per share in the prior-year quarter.
AVTR's Results In Details
Revenues totaled $1.58 billion in the reported quarter, flat year over year. The metric beat the Zacks Consensus Estimate by 2.1%.
Avantor's foreign currency translation had a positive impact of 4.1%, resulting in a 4.1% sales decline on an organic basis.
Avantor’s Segmental Analysis
Laboratory Solutions (VWR Distribution & Services)
Net sales in the Laboratory Solutions segment totaled $1.15 billion in the first quarter, down 5% organically year over year. The decline was primarily driven by lower volumes amid continued softness in end markets, particularly in Europe, along with a modest impact from adverse winter weather in the United States. This figure compares with our segmental projection of $1.05 billion.
Despite the year-over-year decline, management indicated that the segment is stabilizing, with performance largely in line with expectations. The VWR e-commerce platform showed encouraging trends, with improvements in traffic, conversions and revenues following recent digital upgrades and the relaunch of vwr.com. However, margins were pressured by lower volumes, pricing dynamics and higher freight costs. The company expects growth to improve gradually through 2026, with a return to positive organic growth in the second half.
Bioscience Production (Bioscience & Medtech Products - BMP)
The Bioscience Production segment reported net sales of $431 million, reflecting a 2% organic decline year over year. The performance exceeded management expectations, supported by strong execution in process chemicals and NuSil. This figure compares with our segmental projection of $557 million.
Within the segment, process chemicals delivered double-digit organic growth, driven by improved operations and strong order trends. However, fluid handling and NuSil declined by double digits due to tough prior-year comparisons, while research and specialty chemicals saw a slight decline. Management noted that normalization of customer ordering patterns in certain businesses acted as a mid-single-digit headwind to growth in the quarter.
Operationally, the segment showed signs of improvement, with reduced back orders and a strong book-to-bill ratio of above 1.1x, indicating healthy demand. Margins declined year over year due to lower volumes, unfavorable mix and inventory-related headwinds. Management expects growth to hit its lowest point in the second quarter and improve in the second half of 2026.
AVTR’s Margin Analysis
In the quarter under review, Avantor’s gross profit declined 6.4% year over year to $500.7 million. The gross margin contracted 210 basis points (bps) to 31.7%.
Selling, general and administrative expenses increased 3.5% year over year to $401.2 million.
Adjusted operating profit totaled $190.6 million, down 21.5% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 330 bps to 12.1%.
Avantor’s Financial Position
Avantor exited the first quarter of 2026 with cash and cash equivalents of $279.3 million compared with $365.4 million at the end of the fourth quarter of 2025. Total debt at the end of the first quarter of 2026 was $3.82 billion compared with $3.95 billion at the end of the fourth quarter of 2025.
Net cash provided by operating activities at the end of the first quarter of 2026 was $58.7 million compared with $109.3 million a year ago.
AVTR’s 2026 Guidance
Avantor reaffirmed the fiscal 2026 financial guidance it provided during its fourth-quarter 2025 earnings call.
Per the guidance, the company projects organic revenue growth of negative 2.5% to negative 0.5%, with growth in the VWR distribution business expected to modestly outpace that of Bioscience and Medtech Products. The company expects adjusted earnings per share to lie in the range of 77 cents to 83 cents. The Zacks Consensus Estimate is pegged at 79 cents.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Avantor has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. 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. Interestingly, Avantor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Avantor belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Elevance Health reported revenues of $49.49 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $12.58 for the same period compares with $11.97 a year ago.
For the current quarter, Elevance Health is expected to post earnings of $6.16 per share, indicating a change of -30.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.5% over the last 30 days.
Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.