CLEVELAND - Avient Corporation (NYSE: AVNT) delivered a robust first quarter performance with adjusted earnings per share (EPS) surpassing expectations, thanks to higher demand in defense applications and lower raw material costs.
The company reported an adjusted EPS of $0.76, outperforming the analyst consensus of $0.69. However, revenue saw a slight decline to $829 million from $845.7 million in the previous year's quarter, but still exceeded the consensus estimate of $818.45 million.
The first quarter's adjusted EPS represented a 21% increase from the prior year, driven by improved margins from lower raw material costs, favorable product mix, and lower net interest expense.
Avient's President and CEO, Dr. Ashish Khandpur, attributed the positive results to robust demand for the company's Dyneema® fiber technology used in personal protection applications and raw material deflation, which led to a 150 basis point improvement in the total company adjusted EBITDA margin YoY.
Regionally, the Americas showed resilience with year-over-year sales growth, while Greater China also experienced growth, particularly in the industrial and healthcare end markets. These gains helped to offset softer demand in Europe and Southeast Asia.
Looking forward, Avient has raised the lower end of its full-year 2024 adjusted EPS guidance to $2.50-$2.65, up from the previous range of $2.40-$2.65, reflecting a 6% to 12% growth over the prior year. This updated guidance is slightly above the analyst consensus of $2.54.
The company's CFO, Jamie Beggs, noted that this revision accounts for the strong first quarter performance and expectations of year-over-year demand improvement from consumer, packaging, and defense end markets.
Avient's management remains focused on driving profitable, organic top-line growth while expanding margins through strategic investments in high-growth end markets with attractive secular trends. The company plans to detail its strategy for sustainable growth later in the year.
While specific information on stock movement was not provided, the positive earnings beat and upward revision in full-year guidance reflect a strong start to 2024 for Avient. The company's focus on innovation and market trends positions it to capitalize on opportunities in the evolving materials sector.
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