Avient stock falls as Q4 revenue misses estimates, outlook cautious

Published 13/02/2025, 12:24
Avient stock falls as Q4 revenue misses estimates, outlook cautious

NEW YORK - Avient Corporation reported fourth-quarter earnings on Thursday that met expectations, but revenue fell short of analyst estimates, sending shares down 5.10% in pre-market trading.

The materials solutions innovator reported adjusted earnings per share (EPS) of $0.49 for the fourth quarter, in line with analyst estimates. However, revenue came in at $747 million, below the consensus estimate of $755.91 million.

Despite the revenue miss, Avient saw organic sales growth of 5% in the quarter, with positive growth across all geographic regions. The U.S. and Canada led with 6% growth, followed by Asia at 7%, Latin America at 14%, and EMEA at 1%.

"Our teams remained focused and delivered 5% organic sales growth in the quarter with a backdrop of U.S. elections, inflation fears, and a changing geopolitical climate," said Dr. Ashish Khandpur, President and CEO of Avient Corporation.

For the full year 2024, Avient reported adjusted EPS of $2.66, representing a 13% increase over the prior year. The company achieved organic sales growth in both its Color, Additives and Inks and Specialty Engineered Materials segments, growing at 3% and 6% respectively.

Looking ahead, Avient provided guidance for the first quarter of 2025, projecting adjusted EPS of $0.76, in line with analyst expectations. However, this includes a $0.04 foreign exchange headwind due to the stronger U.S. dollar.

For the full year 2025, Avient expects adjusted EPS to range from $2.70 to $2.94. The mid-point of this range represents 11% growth when excluding the unfavorable impact of foreign exchange of $0.12.

"The current macro environment presents several uncertainties related to policy, inflation, foreign exchange and interest rates which provides for a broader set of potential outcomes for the year," said Jamie Beggs, Senior Vice President and CFO of Avient Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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