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Avient
🇺🇸 NYSE:AVNT
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•
Jun 30, 2024

Avient Q2 2024 Earnings Report

Reported a 3% increase in sales and a 21% increase in adjusted EPS, exceeding guidance.

Key Takeaways

Avient reported a strong second quarter with sales growth and adjusted EPS exceeding expectations. Consolidated sales expanded for the first time in seven quarters, with contributions from both Color, Additives and Inks, and Specialty Engineered Materials segments. The company is increasing its full-year adjusted EPS guidance range.

Second quarter sales grew to $850 million, a 3% increase over the prior year quarter.

Second quarter GAAP EPS from continuing operations was $0.36 compared to $0.24 in the prior year quarter.

Second quarter adjusted EPS of $0.76 exceeded guidance of $0.71 and increased 21% over prior year quarter.

The company is increasing 2024 full-year adjusted EPS guidance range to $2.55 to $2.70, from prior guidance of $2.50 to $2.65.

Total Revenue
$850M
Previous year: $824M
+3.1%
EPS
$0.76
Previous year: $0.63
+20.6%
Adjusted Gross margin
30.32%
Previous year: 29.2%
+3.8%
Gross Profit
$258M
Previous year: $241M
+7.0%
Cash and Equivalents
$489M
Previous year: $529M
-7.4%
Free Cash Flow
$74.5M
Previous year: -$28.1M
-365.1%
Total Assets
$5.91B
Previous year: $6.05B
-2.4%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

The company expects adjusted EPS of $0.62 for the third quarter, a 9% increase over the prior year. Revised full-year guidance for adjusted EBITDA is now $515 million to $540 million, and the revised range for adjusted EPS is between $2.55 to $2.70.

Positive Outlook

  • Anticipate continued year-over-year organic sales growth.
  • Both segments growing earnings.
  • Growth momentum to continue.
  • Teams focused on providing innovative materials and processing solutions.
  • Enable our customers' challenges to enable a sustainable world.

Challenges Ahead

  • Demand outlook for the second half of the year remains largely unchanged from our previous outlook in May.
  • disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future.
  • the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks
  • disruptions or inefficiencies in our supply chain, logistics, or operations
  • changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Avient