The Alpharetta, Ga.-based company reported profits of $86.5 million, or -6¢ per share, on sales of $163.7 million for the three months ended June 30, for a bottom-line loss of -12.4% sales loss of -4.9% compared with Q2 2019.
Adjusted to exclude one-time items, earnings per share were 13¢, 14¢ ahead of The Street, where analysts were looking for sales of $147.9 million.
“We’re pleased we continue to meet the needs of patients during the pandemic, as we quickly acted to increase production capacity for our clinically-proven respiratory health products while ensuring our employees’ health and safety,” CEO Joe Woody said in a news release.
“During the quarter we were excited to see elective procedure volume return above expectations, which bolstered our pain management franchises sales ahead of our forecast. While we are encouraged elective procedures resumed, we are cautious about the increasing number of COVID-19 cases and its potential impact to slow the recovery of elective procedures,” Woody said. “Though we now anticipate the disruption will continue into 2021, the strategic steps taken to reduce costs and deliver improved cash flow position us for growth in a post-COVID-19 environment.”
Avanos Medical said the acquisitions of NeoMed and Summit contributed 6% of growth and organic volume was 11% lower compared to 2019. Its chronic care division saw continued growth due to an elevated global demand in respiratory health from closed suction systems due to the COVID-19 pandemic. However, the growth was offset by lower volume in acute pain and interventional pain due to fewer elective procedures.
As previously announced in May, the company withdrew its full-year 2020 financial guidance due to uncertainties associated with the COVID-19 pandemic.
Investors reacted by sending AVNS shares up 1.53% to $31.14 apiece before market open.