Avanos Medical (NYSE:AVNS) this week posted first-quarter results that aligned with the earnings consensus on Wall Street but missed revenue estimates.
Investors reacted by sending shares in AVNS down 15.81% to $24.38 apiece in afternoon trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up slightly.
The Alpharetta, Georgia-based digestive health device maker reported profit losses of $500,000 or, 1¢ per share, on sales of $191.7 million for the three months ended March 31, for a bottom line loss of 2.89% and profit loss of 109.3% compared to Q1 2022.
Adjusted to exclude one-time items, earnings per share were 27¢, in line with the Wall Street consensus, where analysts were looking for sales of $195.2 million.
“Our first quarter results were mixed, with our digestive health portfolio continuing to outperform, strong adjusted earnings per share and continued margin improvement partially offset by our results in our pain portfolio,” CEO Joe Woody said in a news release.
“Separately, we made considerable progress on our transformation initiative during the first quarter. We look forward to sharing further details about these initiatives at our upcoming Investor Day.”
For fiscal 2023, Avanos Medical is affirming its previous guidance. It anticipates low single-digit organic growth and adjusted diluted earnings per share between $1.60 and $1.80.