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Avanos Medical dips on Street-beating Q3 earnings

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AvanosAvanos Medical (NYSE:AVNS) this week posted third-quarter results that beat the consensus on Wall Street.

The Alpharetta, Ga.-based company reported profits of $19.3 million, or 40¢ per share, on sales of $185.7 million for the three months ended Sept. 30, 2020, for a sales growth of 8.3% compared with Q3 2019.

Adjusted to exclude one-time items, earnings per share were 21¢, 11¢ ahead of The Street, where analysts were looking for sales of $165.9 million.

“Thanks to the work of our team and their focus on execution, our momentum continued as we delivered results ahead of our expectations,” CEO Joe Woody said in a news release. “Our performance was bolstered by the continued demand for our clinically proven respiratory health products and the sequential acceleration of elective procedures.

“The team’s resilient mindset along with the strategic steps we’ve enacted to reduce expenses and boost cash flow have enabled us to effectively manage the business through this unparalleled environment,” Woody added. “Further, we’ve resumed investing in our growth platforms to advance our strategy and position us for sales growth, margin expansion and positive free cash flow in 2021 and beyond.”

Avanos Medical did not provide a full-year 2020 financial guidance due to the uncertainties surrounding the COVID-19 pandemic.

Shares in AVNS were down -2.23% to $39.63 apiece in afternoon trading.

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