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Jun 30, 2022

Avient Q2 2022 Earnings Report

Reported a 5% increase in sales and a 13% increase in adjusted EPS, driven by strong performance in the Americas.

Key Takeaways

Avient announced second quarter 2022 results, with sales reaching $1.3 billion, a 5% increase over the prior year quarter, and adjusted EPS increasing 13% to $0.98. The company exceeded its second quarter adjusted EPS guidance, driven by better than expected results in the Americas. Avient maintained its full year adjusted EPS guidance of $3.50.

Second quarter sales grew to $1.3 billion, a 5% increase over the prior year quarter, and an all-time quarterly record.

GAAP EPS increased 24% to $0.92 compared to $0.74 in the prior year quarter.

Adjusted EPS increased 13% to $0.98 compared to $0.87 in the prior year quarter, exceeding second quarter guidance of $0.92.

Third quarter adjusted EPS guidance of $0.80 introduced with full year adjusted EPS guidance of $3.50 maintained.

Total Revenue
$1.3B
Previous year: $1.24B
+5.4%
EPS
$0.98
Previous year: $0.87
+12.6%
Adjusted Gross margin
23.3%
Previous year: 23.37%
-0.3%
Adjusted Operating income
10.3%
Previous year: 8.75%
+17.7%
Gross Profit
$304M
Previous year: $289M
+5.2%
Cash and Equivalents
$645M
Previous year: $616M
+4.7%
Free Cash Flow
$67.1M
Previous year: $38.9M
+72.5%
Total Assets
$5.04B
Previous year: $5.05B
-0.1%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

Without giving effect to any impacts from the pending acquisition of Dyneema and potential sale of Avient Distribution, the company provided third quarter adjusted EPS guidance of $0.80, a 14% increase from the prior year quarter, and maintained its full year adjusted EPS guidance of $3.50.

Positive Outlook

  • Expect demand in Asia to improve from the prior quarter.
  • Growth to continue in the Americas.
  • Third quarter adjusted EPS guidance of $0.80, a 14% increase from the prior year quarter.
  • Maintained full year adjusted EPS guidance of $3.50.
  • Remain on track with timeline for the acquisition and expect to close in September, subject to the satisfaction of customary closing conditions.

Challenges Ahead

  • Softening conditions in Europe.
  • Weaker foreign exchange.
  • Continuing challenges including inflation
  • Continuing challenges including supply chain disruptions
  • Extended lockdowns in China and the war in Ukraine

Revenue & Expenses

Visualization of income flow from segment revenue to net income