Avanos Medical (NYSE:AVNS) Sets New 1-Year High Following Strong Earnings

Key Points

• Avanos stock reached a new 52-week high (intraday $25.45, last $24.70) after reporting a quarter with an EPS beat of $0.22 vs. $0.14 consensus and revenue of $182.2M (vs. $170M), up 8.8% year-over-year.
• Despite the beat, the company remains unprofitable on the bottom line with a negative net margin of -10.4% and a negative P/E (reported as -15.64), though it has a $1.15B market cap and conservative leverage (debt/equity 0.12).
• Analyst sentiment is mixed-to-cautious (average rating "Reduce") even as institutional ownership is very high at 95.17%, indicating concentrated investor interest despite subdued analyst outlooks.

Avanos Medical, Inc. (NYSE:AVNS - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $25.45 and last traded at $24.70, with a volume of 570 shares. The stock had previously closed at $24.66.

The company reported $0.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.08. Avanos Medical had a positive return on equity of 5.47% and a negative net margin of 10.40%.The business had revenue of $182.20 million for the quarter, compared to analyst estimates of $170.00 million. During the same period last year, the company earned $0.26 EPS. Avanos Medical's revenue for the quarter was up 8.8% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on AVNS shares. Zacks Research raised shares of Avanos Medical from a "strong sell" rating to a "hold" rating in a report on Monday, January 26th. Weiss Ratings raised Avanos Medical from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, April 22nd. Finally, Wall Street Zen lowered Avanos Medical from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Reduce".

Institutional Trading of Avanos Medical

Large investors have recently bought and sold shares of the company. Thrivent Financial for Lutherans boosted its position in shares of Avanos Medical by 352.2% during the third quarter. Thrivent Financial for Lutherans now owns 153,764 shares of the company's stock valued at $1,778,000 after purchasing an additional 119,760 shares in the last quarter. Clark Estates Inc. NY raised its holdings in Avanos Medical by 58.7% in the third quarter. Clark Estates Inc. NY now owns 783,880 shares of the company's stock worth $9,062,000 after purchasing an additional 290,000 shares in the last quarter. JPMorgan Chase & Co. lifted its position in Avanos Medical by 116.8% during the third quarter. JPMorgan Chase & Co. now owns 577,889 shares of the company's stock valued at $6,680,000 after buying an additional 311,317 shares during the period. Diamond Hill Capital Management Inc. boosted its holdings in shares of Avanos Medical by 26.0% during the 3rd quarter. Diamond Hill Capital Management Inc. now owns 434,661 shares of the company's stock valued at $5,025,000 after buying an additional 89,630 shares in the last quarter. Finally, Tudor Investment Corp ET AL grew its position in shares of Avanos Medical by 509.6% in the 3rd quarter. Tudor Investment Corp ET AL now owns 71,893 shares of the company's stock worth $831,000 after buying an additional 60,099 shares during the period. 95.17% of the stock is owned by institutional investors.

Avanos Medical Stock Performance

The company has a market capitalization of $1.15 billion, a P/E ratio of -15.64 and a beta of 1.58. The company's 50 day moving average is $16.66 and its 200-day moving average is $13.73. The company has a current ratio of 2.15, a quick ratio of 1.26 and a debt-to-equity ratio of 0.12.

About Avanos Medical

Avanos Medical is a global medical technology company that develops and markets a broad portfolio of medical devices intended to improve patient outcomes in hospital, outpatient and post-acute care settings. The company's products focus on three core therapy areas—pain management, enteral feeding and respiratory care—designed to help clinicians manage post-operative pain, deliver nutrition support and assist breathing for patients across a variety of acute and chronic conditions.

In its pain management segment, Avanos offers both non-opioid drug delivery systems and cryoanalgesia devices, including ambulatory infusion pumps and cooled radiofrequency ablation platforms.

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