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Mar 31, 2022
Avient Q1 2022 Earnings Report
Reported an 11% increase in sales and adjusted EPS exceeding guidance.
Key Takeaways
Avient Corporation announced its first quarter 2022 results, with sales increasing by 11% to $1.3 billion and adjusted EPS growing by 11% to $0.99. The company exceeded its initial estimates for the quarter, driven by sales growth in nearly all end markets, which offset inflation.
First quarter sales grew to $1.3 billion, an 11% increase over the prior year.
GAAP EPS increased to $0.91 from $0.86 in the prior year first quarter.
Adjusted EPS increased 11% to $0.99 compared to $0.89 in the prior year first quarter, exceeding first quarter guidance of $0.95.
Full year free cash flow now expected to approximate $285 million, an increase of $35 million from prior estimates
Avient
Avient
Avient Revenue by Segment
Revenue by Segment
Color & Additives Revenue
CapyFin.comSpecialty Materials Revenue
CapyFin.com Forward Guidance
The company introduced second quarter adjusted EPS guidance of $0.92 and maintained full year adjusted EPS expectation at $3.50 (excluding the impact of the acquisition). Full year free cash flow is now expected to approximate $285 million.
Positive Outlook
- Maintaining full year adjusted EPS guidance of $3.50 on stronger growth projections in the Americas.
- The company delivered first quarter GAAP EPS of $0.91 compared to $0.86 in the prior year quarter.
- Sales increased 11% to $1.3 billion in the first quarter
- Adjusted EPS grew 11% to $0.99 over the prior year first quarter.
- Full year free cash flow now expected to approximate $285 million, an increase of $35 million from prior estimates
Challenges Ahead
- Weaker foreign exchange rates
- Covid-related lockdowns in China
- War in Ukraine
- Impact of special items on net income attributable to Avient Shareholders $(7.2)
- Restructuring costs, including accelerated depreciation and amortization
Revenue & Expenses
Visualization of income flow from segment revenue to net income