Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions Group 1: Company-Specific Insights - Avantor, Inc. (AVTR) provides mission-critical products and services for life sciences industries, with a 9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Columbus McKinnon Corporation (CMCO) is a scientific and technical instruments company, experiencing a 26% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The Kraft Heinz Company (KHC) operates in the food and beverages sector, with a 10.3% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Avantor Inc. (NYSE:AVTR) is one of the most undervalued mid cap stocks to buy now. On February 12, Bank of America analyst Michael Ryskin lowered the firm’s price target on Avantor to $11 from $13 and kept a Neutral rating. This decision followed a sharp market reaction to a soft FY 2026 guidance. The firm noted that visibility into a potential recovery remains limited as management has yet to provide a clear path to improvement, leading to expectations that the shares will remain under pressure. The revi ...

Key Insights:Director SUMME GREGORY L's significant insider purchase of 100,000 shares signals confidence in Avantor's future.Avantor's Q4 earnings surpassed expectations, but profitability concerns arise with a sharp drop in GAAP EPS.The company faces challenges ahead with expected organic revenue declines.Avantor, Inc. (NYSE:AVTR) is a global provider of mission-critical products and services to customers in the life sciences and advanced technologies industries. The company offers a wide range of product ...

Key Takeaways AVTR shares plunged 13.6% despite Q4 adjusted EPS and revenues topping estimates.Avantor posted 1.4% revenue decline and 310 bps adjusted operating margin contraction.AVTR guides 2026 organic revenues down 2.5% to 0.5% and EPS of 77-83 cents.Avantor, Inc. (AVTR) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 22 cents, down 18.5% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 4.8%.GAAP EPS for the quarter was 8 cents, down from 7 ...

As part of that shift, management said it has recommitted to the VWR brand for the channel business. Ligner said suppliers, customers and employees routinely referred to the distribution channel as VWR, and the company has now restored that brand name. He also emphasized investments in digital capabilities, noting an update to the VWR e-commerce platform launched in the fourth quarter and an additional planned $10 million to $15 million of investment in 2026 to upgrade customer interfaces.Ligner highlighted ...

Core Viewpoint - Avantor's shares are nearing critical lows due to a decline in organic sales and lower-than-expected earnings guidance for fiscal 2026 [1][4]. Financial Performance - Avantor reported sales of $1.66 billion, slightly above the consensus estimate of $1.64 billion, but experienced a year-over-year decline of 1.4% [1]. - The company faced a 4.1% decline in organic sales, influenced by a positive foreign currency translation impact of 3.1% and a negative M&A impact of 0.4% [1][2]. - Laboratory Solutions sales were $1.116 billion, reflecting a 0.9% decrease, while Bioscience Production sales were $548 million, down 2.4% [1][2]. Guidance and Expectations - For fiscal 2026, Avantor expects adjusted earnings per share to be between 77 cents and 83 cents, below the consensus of 90 cents [4]. - The company anticipates organic revenue to decline between 2.5% and 0.5%, with an adjusted EBITDA margin projected between 14.8% and 15.3% [4]. - Free cash flow for 2026 is expected to be between $500 million and $550 million [4]. Analyst Insights - Avantor shares are trading at 11.4 times the midpoint of the 2026 adjusted EBITDA guidance, compared to peers at 17.6 times and its own average of 15.5 times as a public company [5]. - Analysts note that while there is potential for outperformance as end-markets recover and cost savings are realized, the company's growth and margin profile remain below peers, justifying the current discount [6]. - The stock is rated as Market Perform by analysts [6]. Stock Performance - Avantor shares are down 15.46% at $9.44, with a trading range for the day between $9.86 and $8.89, and currently 4.7% above its 52-week low [7].

Financial Data and Key Metrics Changes - For Q4, reported revenue was $1.66 billion, down 4% year-over-year on an organic basis, aligning with guidance [15] - Adjusted EBITDA margin was 15.2%, and adjusted EPS for the quarter was $0.22, reflecting a decline of $0.05 year-over-year [15][16] - Full-year reported revenues were $6.552 billion, down 3% on an organic basis, with adjusted gross profit of $2.14 billion, representing a 32.7% adjusted gross margin [17][18] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue for Q4 was $1.116 billion, a decline of 4% year-over-year on an organic basis [18] - Bioscience production revenue for Q4 was $548 million, reflecting an organic decline of 4% versus the prior year [20] - Adjusted operating income for Laboratory Solutions was $114 million for Q4, with a 10.2% margin, down 290 basis points year-over-year [19][20] Market Data and Key Metrics Changes - The biopharma end market remains healthy, with production levels growing and investments expected to expand capacity [10] - Early-stage biotech, education, and government markets faced challenges in 2025, but there are signs of improvement in funding environments [12] - The fourth quarter saw one of the best quarters for biotech funding in recent years, indicating potential recovery [12] Company Strategy and Development Direction - The Avantor Revival program focuses on five pillars: evolving go-to-market strategy, improving operations, optimizing the portfolio, simplifying processes, and strengthening talent [5][6] - The company will operate with two new business units: product agnostic channel and channel agnostic product business, enhancing customer focus [6][7] - Significant investments will be made in 2026, with a focus on driving sustainable, profitable top-line growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that 2026 will be a year of transition and investment [9][36] - The company anticipates organic revenue growth of -2.5% to -0.5% for 2026, with FX contributing 1% to the top line [27] - EBITDA margins are expected to contract by 100-150 basis points in 2026 due to various headwinds [28] Other Important Information - The company welcomed new board members with significant global leadership and financial expertise [13] - A new Chief Operating Officer has identified $20 million of investment to enhance customer service capabilities [8] Q&A Session Summary Question: Growth expectations for VWR versus bioscience and medtech - Management indicated that VWR growth is expected to outpace bioscience and medtech due to difficult comps in the latter [38][39] Question: Balancing investments and cost-saving initiatives - Management emphasized the importance of maintaining cost discipline while investing in growth opportunities [41][42] Question: Margin guidance and stress-testing assumptions - The guidance is described as prudent, reflecting a balance of various moving parts impacting the P&L [47][48] Question: Impact of investments on margins - Investments in e-commerce and operations are expected to have a significant impact on margins, but specifics were not disclosed [48][49] Question: Industry growth rate under normalized conditions - Management noted the need for further evaluation to determine future growth rates under normalized conditions [58] Question: Clarification on book-to-bill greater than one - The book-to-bill greater than one refers to process chemicals, indicating a positive order book despite operational bottlenecks [66][67]

Avantor (NYSE:AVTR) Q4 2025 Earnings call February 11, 2026 08:00 AM ET Company ParticipantsBrandon Couillard - Managing DirectorBrent Jones - EVP and CFOChris Fidyk - VP of Investor RelationsEmmanuel Ligner - President and CEOMichael Ryskin - Managing DirectorPaul Knight - Managing DirectorVijay Kumar - Senior Managing DirectorConference Call ParticipantsCasey Woodring - VP and Equity Research AnalystDan Brennan - Senior Equity Research Analyst and Managing DirectorLuke Sergott - Director and Healthcare Eq ...

Financial Data and Key Metrics Changes - In Q4, reported revenue was $1.66 billion, down 4% year-over-year on an organic basis, aligning with guidance [13] - Adjusted EBITDA margin was 15.2%, and adjusted EPS for the quarter was $0.22, reflecting a decline of $0.05 year-over-year [14] - For the full year 2025, reported revenues were $6.552 billion, down 3% on an organic basis, with adjusted gross profit of $2.14 billion, representing a 32.7% adjusted gross margin [16] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue for Q4 was $1.116 billion, a decline of 4% year-over-year on an organic basis [17] - Bioscience production revenue for Q4 was $548 million, reflecting an organic decline of 4% versus the prior year [19] - The VWR Distribution and Services segment represented about 72% of enterprise revenue in 2025, with an adjusted operating margin of 11.5% [23] Market Data and Key Metrics Changes - The biopharma end market remains healthy, with production levels growing and many companies planning investments to expand capacity [9] - Early-stage biotech, education, and government markets faced challenges in 2025, but there are signs of improvement in funding environments, particularly in Europe and Japan [11] - The company noted a book-to-bill ratio of more than one for process chemicals, indicating a positive order book [20] Company Strategy and Development Direction - The Avantor Revival program focuses on five pillars: evolving go-to-market strategy, improving operations, optimizing the portfolio, simplifying processes, and strengthening talent [4] - The company plans to operate with two new business units: a product-agnostic channel and a channel-agnostic product business, enhancing customer focus [5] - Significant investments will be made in 2026 to drive sustainable, profitable top-line growth, with a focus on organic revenue growth rate as a key metric [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that 2026 will be a year of transition and investment [8] - The company anticipates organic revenue growth of -2.5% to -0.5% for 2026, with expectations for VWR growth to outpace that of Bioscience and Medtech Products [25] - Management highlighted the importance of executing the revival plan to achieve improved operating leverage and margin improvement [31] Other Important Information - The company welcomed new board members with global leadership and financial expertise [12] - A significant focus will be on enhancing digital capabilities, with a commitment to invest $10 million-$15 million in e-commerce upgrades in 2026 [6] Q&A Session Summary Question: Expectations for segment growth in 2026 - Management indicated that growth in VWR is expected to outpace that of Bioscience and Medtech Products due to difficult comps in the latter [37] Question: Balancing investments and cost-saving initiatives - Management emphasized that cost discipline will remain a priority, and investments will be self-funded through optimization [40][41] Question: Margin guidance and stress-testing assumptions - Management described the guidance as prudent, reflecting a balance of various moving parts impacting the P&L in 2026 [45][46] Question: Impact of investments on margins - Management noted that investments in operations and e-commerce will have a significant impact on margins, but specific quantification was not provided [47][48] Question: Clarification on book-to-bill ratio - The book-to-bill ratio greater than one was specifically related to process chemicals, indicating a positive outlook despite existing operational bottlenecks [63][65]

分组1 - Avantor, Inc. reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.27 per share a year ago, representing an earnings surprise of +2.85% [1] - The company posted revenues of $1.66 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.00%, although this is a decrease from year-ago revenues of $1.69 billion [2] - Avantor has surpassed consensus revenue estimates two times over the last four quarters, while it has only beaten consensus EPS estimates once during the same period [2] 分组2 - The stock has underperformed the market, losing about 2.6% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.20 on $1.57 billion in revenues, and for the current fiscal year, it is $0.89 on $6.51 billion in revenues [7] 分组3 - The Zacks Industry Rank indicates that the Medical Services sector is currently in the top 36% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Avantor's estimate revisions trend was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]