As of August 25, 2023, Avanos Medical Inc. has received varied ratings from equity analysts in recent reports. StockNews.com downgraded the company’s shares from a “buy” rating to a “hold” rating on August 16th. Similarly, KeyCorp also lowered its rating on Avanos Medical from an “overweight” rating to a “sector weight” rating on July 25th. In contrast, CL King initiated coverage on the stock with a “buy” rating and set a price objective of $31.00 back in May 22nd.
Another research report by TheStreet downgraded Avanos Medical’s rating from a “b-” to a “c” on May 3rd. Despite these mixed reviews, Bloomberg.com reports that the average consensus among analysts is currently assessed as ‘Hold’, with an average target price of $31.00 for the company.
Avanos Medical Inc. operates as a medical technology company focusing on providing medical device solutions globally across various regions including North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company specializes in offering chronic care products that cater to digestive health such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions and NeoMed neonatal and pediatric feeding solutions. Additionally, they provide respiratory health products which consist of closed airway suction systems and other airway management devices under brands like Ballard, Microcuff, and Endoclear.
The opening stock price for AVNS was recorded at $22.06 on Friday. Over a period of 50 days, the simple moving average settled at $24.44 while the 200-day simple moving average stood at $26.48 for Avanos Medical Inc.. In terms of its yearly performance data gathered within the past twelve months range; observed figures indicate that AVNS’s stock had reached its lowest point at $19.32 while peaking at the highest recorded value of $31.99. These statistics provide insights into the stock’s fluctuation and trends.
Additionally, Avanos Medical Inc. displays favorable liquidity ratios with a current ratio of 3.16 which indicates its ability to meet short-term obligations using available assets efficiently and prudently. Similarly, the quick ratio is assessed at 2.23 suggesting the company’s ability to generate adequate liquid assets quickly to cover immediate liabilities. Furthermore, the company possesses a reasonable debt-to-equity ratio of 0.16 which indicates a lower financial risk associated with heavy borrowing.
In conclusion, despite receiving mixed ratings from analysts in recent reports, Avanos Medical Inc., as a medical technology company, remains focused on delivering medical device solutions globally. With a diverse portfolio consisting of chronic care products related to digestive health and respiratory health, Avanos Medical continues to serve its markets across various regions worldwide. The stock performance showcases fluctuations over time, indicating both high points and low points throughout the year. However, bolstered by favorable liquidity ratios and a reasonable debt-to-equity ratio, Avanos Medical demonstrates stability in its financial standing as it navigates the ever-evolving medical device industry.
Avanos Medical, Inc.
Updated on: 05/12/2023
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Buy
DCF: Strong Buy
8:00 AM (UTC)
Date:05 December, 2023
|Analyst / firm||Rating|
Avanos Medical Faces Reduced FY2023 Earnings Estimates, but Long-Term Potential Remains
Avanos Medical, Inc. (NYSE:AVNS) has recently experienced a reduction in FY2023 earnings estimates, according to equities researchers at Zacks Research. The analysts’ report, released on August 23rd, indicates that the company is projected to earn $1.07 per share for the year, a decrease from their previous estimate of $1.62. However, the consensus estimate for Avanos Medical’s current full-year earnings remains at $1.10 per share.
In addition to these findings, Zacks Research also provided estimates for Avanos Medical’s quarterly earnings for 2023 and beyond. They project Q4 2023 earnings at $0.27 EPS, Q1 2024 earnings at $0.30 EPS, Q3 2024 earnings at $0.44 EPS, Q4 2024 earnings at $0.43 EPS, FY2024 earnings at $1.54 EPS and FY2025 earnings at $2.04 EPS.
Avanos Medical is a medical technology company that specializes in delivering medical device solutions across various regions including North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company’s portfolio focuses on chronic care products such as digestive health products and respiratory health products under well-known brands like Mic-Key enteral feeding tubes and Ballard closed airway suction systems.
In its most recent quarterly earnings report issued on August 9th, Avanos Medical reported an EPS of $0.24 for the quarter, falling short of analysts’ consensus estimates of $0.34 by ($0.10). Despite this miss in expected earnings per share, Avanos Medical demonstrated a positive return on equity of 5.49% but recorded a negative net margin of 4.61%. The company generated revenue of $169.40 million for the quarter while falling short of the consensus estimate of $186.30 million. Comparatively, Avanos Medical’s revenue was down 16.6% from the previous year.
Regarding institutional investors, recent modifications have been made to their holdings of Avanos Medical. Notably, Eagle Asset Management Inc. increased its stake in the company by 0.3% during the first quarter and now owns 202,026 shares valued at $6,008,000. Similarly, Dimensional Fund Advisors LP boosted its stake by 2.3% during the fourth quarter and currently holds 2,891,836 shares valued at $78,254,000. New York State Common Retirement Fund also saw an increase of 2.5% in its stake during the fourth quarter and now owns 56,198 shares valued at $1,521,000.
Another notable investor is Heritage Wealth Management LLC which saw a significant surge in its stake by 121.8%, bringing their total holding to 20,068 shares worth $543,000 during the fourth quarter. Lastly Keene & Associates Inc., entered into a new position during the first quarter with shares worth $347,000.
Overall, it is clear that Avanos Medical’s FY2023 earnings estimates have been reduced by Zacks Research analysts compared to their previous projections. While there may be some cause for concern due to lower-than-expected earnings per share and declining revenue figures from the prior year’s period; it is essential to consider other factors such as institutional investment activity when evaluating the long-term potential of Avanos Medical as a medical technology company.