Life sciences company Avantor (NYSE: AVTR) will be announcing earnings results this Wednesday before market open. Here’s what investors should know.
Avantor beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.68 billion, down 1.1% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates.
Is Avantor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Avantor’s revenue to decline 3.9% year on year to $1.65 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Avantor has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Avantor’s peers in the research tools & consumables segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Thermo Fisher delivered year-on-year revenue growth of 4.9%, beating analysts’ expectations by 1.9%, and Danaher reported revenues up 4.4%, topping estimates by 0.6%. Thermo Fisher traded up 2.6% following the results while Danaher was also up 4.7%.
Read our full analysis of Thermo Fisher’s results here and Danaher’s results here.
There has been positive sentiment among investors in the research tools & consumables segment, with share prices up 7% on average over the last month. Avantor is up 27.6% during the same time and is heading into earnings with an average analyst price target of $14.70 (compared to the current share price of $15.11).
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