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Mar 31, 2024

Avient Q1 2024 Earnings Report

Reported a strong start to the year with adjusted EPS exceeding guidance and increasing 21% over the prior year.

Key Takeaways

Avient Corporation announced first quarter results for 2024, with sales of $829.0 million. Adjusted EPS was $0.76, exceeding guidance. The company revised its full-year adjusted EPS guidance range to $2.50 to $2.65.

First quarter GAAP EPS from continuing operations was $0.54, compared to $0.23 in the prior year quarter.

First quarter adjusted EPS of $0.76 exceeded guidance of $0.68, driven by better-than-expected customer demand from defense applications and lower raw material costs.

First quarter adjusted EPS increased 21% over the prior year, driven by improved margins and lower net interest expense.

Revised 2024 full-year adjusted EPS guidance range to $2.50 to $2.65, from prior guidance of $2.40 to $2.65.

Total Revenue
$829M
Previous year: $846M
-2.0%
EPS
$0.76
Previous year: $0.63
+20.6%
Adjusted Gross margin
33.6%
Previous year: 30.2%
+11.3%
Adjusted Operating income
12.1%
Previous year: 10%
+21.0%
Gross Profit
$278M
Previous year: $248M
+12.4%
Cash and Equivalents
$444M
Previous year: $583M
-23.8%
Free Cash Flow
-$67.2M
Previous year: -$42.5M
+58.1%
Total Assets
$5.88B
Previous year: $6.11B
-3.8%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

For the second quarter, the company expects adjusted EPS of $0.71, a 13% increase over the prior year. The revised range for adjusted EBITDA is between $510 million and $535 million. The revised range for adjusted EPS is between $2.50 and $2.65.

Positive Outlook

  • Expect year over year demand improvement from consumer, packaging and defense end markets
  • Expect raw material deflation to support margin expansion year over year
  • Raising the low end of full year guidance
  • Focused on driving profitable, organic, top-line growth while expanding margins
  • Will amplify innovation by prioritizing investments in high growth end markets with attractive secular trends

Challenges Ahead

  • Mindful of a strengthening U.S. dollar
  • Persistent macro inflation
  • A higher for longer interest rate environment
  • Taking a balanced view considering these factors
  • Underlying growth in regions helped offset softer demand in Europe and Southeast Asia.

Revenue & Expenses

Visualization of income flow from segment revenue to net income