Lab equipment maker Avantor's Q3 sales miss estimates, announces $500 mln share repurchase

Overview

• Avantor Q3 net sales decline 5.3% to $1.62 bln, missing analyst expectations

• Company reports Q3 net loss due to $785 mln goodwill impairment charge

• Adjusted EPS for Q3 meets analyst expectations at $0.22

• Avantor announces $500 mln share repurchase authorization

Outlook

• Avantor announces $500 mln share repurchase program to enhance shareholder value

• Company focuses on strategic investments in manufacturing and supply chain

• Avantor aims to improve execution and financial performance amid macroeconomic challenges

Result Drivers

• GOODWILL IMPAIRMENT - $785 mln non-cash goodwill impairment charge on Distribution unit due to market conditions and financial performance

• STRATEGIC CHANGES - Co is evolving its go-to-market approach and investing in manufacturing and supply chain to improve performance

• FOREIGN CURRENCY IMPACT - Foreign currency translation had a positive impact of 2.2% on sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Avantor Inc is $14.06, about 7.3% below its October 28 closing price of $15.08

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPnc7xpfba

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.