Specialty materials maker Avient's Q3 sales miss estimates due to weak consumer sentiment, tariff policy

Overview

• Avient Q3 sales fell 1% yr/yr, missing analyst expectations

• Adjusted EPS for Q3 grew 8% yr/yr, in line with company's prior guidance

• Company repaid $50 mln debt in Q3, totaling $100 mln YTD

Outlook

• Avient maintains 2025 full-year adjusted EPS guidance of $2.77 to $2.87

• Company updates full-year adjusted EBITDA guidance to $540 to $550 mln

• Avient expects total debt repayment of $150 mln by year-end 2025

Result Drivers

• MARGIN EXPANSION - Adjusted EPS growth driven by EBITDA margin expansion and lower interest and tax expenses

• SECTOR GROWTH - Defense, healthcare, and telecommunications sectors showed strong sales growth

• WEAK DEMAND - Weak consumer sentiment and geopolitical uncertainty negatively impacted demand in key markets

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Avient Corp is $42.00, about 25.5% above its November 4 closing price of $31.29

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn4tVjkXa

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