Avantor raises FY revenue growth, profit guidance after Q3 beat
Overview
US life science tools firm's Q3 sales rose 4.6%, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised FY 2026 guidance for organic revenue growth, adjusted EPS and free cash flow
Outlook
Avantor raises FY 2026 organic revenue growth outlook to +0.75% to +1.25% from -0.5% to +0.5%
Company lifts FY 2026 adjusted EPS guidance to $0.81-$0.83 from $0.80-$0.83
Avantor increases FY 2026 free cash flow forecast to $525 mln-$550 mln from $500 mln-$550 mln
Result Drivers
SEGMENT PERFORMANCE - VWR Distribution & Services delivered improved revenue performance with organic growth accelerating to 5.8%, while Bioscience & Medtech Products returned to organic growth as expected
EXECUTION IMPROVEMENTS - Co attributed results to sharpened strategic focus and improved execution
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $1.70 bln | $1.64 bln (15 Analysts) |
Q3 Adjusted EPS | Beat | $0.22 | $0.21 (16 Analysts) |
Q3 Net Income | $203.40 mln | ||
Q3 Gross Profit | $534.80 mln | ||
Q3 Operating Income | $139.50 mln | ||
Q3 Pretax Profit | $98 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 1 "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 $15.00, about 12.4% below its October 27 closing price of $17.13
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)