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Jun 30, 2023

Avient Q2 2023 Earnings Report

Second quarter GAAP and adjusted earnings per share (EPS) were $0.24 and $0.63, respectively, exceeding expectations due to favorable margins in both segments.

Key Takeaways

Avient Corporation announced its second quarter 2023 results, with adjusted EPS exceeding guidance at $0.63, driven by better-than-projected margins in both segments. The company is maintaining its full year adjusted EPS guidance of $2.40, despite lower estimated sales of $3.3 billion.

GAAP EPS of $0.24 includes special items and amortization expense

Adjusted EPS of $0.63 exceeded guidance of $0.60, driven by better-than-projected margins in both segments

Full year adjusted EPS guidance of $2.40 maintained reflecting continued weak demand conditions, offset by adjusted EBITDA margins expected to increase from 15.6% to 16.0% for the year

Most recent Sustainability Report published, highlighting the company’s progress on ESG initiatives focused on People, Products, Planet and Performance

Total Revenue
$824M
Previous year: $1.3B
-36.7%
EPS
$0.63
Previous year: $0.98
-35.7%
Adjusted Gross margin
29.2%
Previous year: 23.3%
+25.3%
Adjusted Operating income
10.2%
Previous year: 10.3%
-1.0%
Gross Profit
$241M
Previous year: $304M
-20.8%
Cash and Equivalents
$529M
Previous year: $645M
-18.0%
Free Cash Flow
-$28.1M
Previous year: $67.1M
-141.9%
Total Assets
$6.05B
Previous year: $5.04B
+20.0%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

The company is maintaining its full year adjusted EPS guidance of $2.40 on lower estimated sales of $3.3 billion.

Positive Outlook

  • Strength in composites
  • Improving margins
  • Cost reductions

Challenges Ahead

  • Continued weak demand conditions
  • Consumers remain cautious with continued inflation
  • Rising interest rates
  • Sluggish demand in Europe
  • Customer inventory destocking

Revenue & Expenses

Visualization of income flow from segment revenue to net income