Alpharetta, Ga.-based Avanos posted losses of -$20.3 million, or -43¢ per share, on sales growth of 5.0% to $164.2 million for the three months ended March 31, compared with profits of $20.2 million during Q1 2018.
Adjusted to exclude one-time items, earnings per share were 15¢, two pennies ahead of The Street, where analysts were looking for sales of $164.0 million.
Avanos also said it put $7 million into NeoMed, which makes specialized feeding and medication dosing devices for pediatrics and neonatal care.
“I’m pleased that we have delivered another quarter of top-line growth driven by continued momentum in our interventional pain and digestive health businesses and earnings in line with our expectations,” CEO Joe Woody said in prepared remarks. “We also deployed capital to make a minority investment in NeoMed, a market leader in specialized feeding and medication dosing for low birth weight, neonatal and pediatric patients, and a business we feel is a strong strategic fit with our digestive health portfolio.”
Avanos said it still expects to report adjusted EPS of $1.15 to $1.35 this year.
AVNS shares, which closed up 1.6% at $46.52 apiece yesterday, were up 0.2% to $46.75 in pre-market trading before a $44.81 open today.