Group 1: Earnings Performance - Avantor, Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and showing an increase from $0.25 per share a year ago, representing an earnings surprise of 8% [1] - Over the last four quarters, Avantor has surpassed consensus EPS estimates four times [2] - The company posted revenues of $1.69 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.45%, and down from $1.72 billion year-over-year [2] Group 2: Stock Performance and Outlook - Avantor shares have increased by about 3% since the beginning of the year, compared to the S&P 500's gain of 3.4% [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 $0.25 on revenues of $1.67 billion, and for the current fiscal year, it is $1.10 on revenues of $6.82 billion [7] Group 3: Industry Context - The Medical Services industry, to which Avantor belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5] - The unfavorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 4 (Sell) for Avantor, suggesting expected underperformance in the near future [6]

Q4 & FY 2024 Earnings Earnings Presentation February 7, 2025 Disclaimer Forward-looking statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forward-lo ...

Financial Performance - Fourth quarter 2024 net sales were $1,686.6 million, a decrease of 2% compared to Q4 2023, with organic growth of 1%[4] - Net income for Q4 2024 increased to $500.4 million from $98.5 million in Q4 2023, resulting in a net income margin of 29.7%[5] - Adjusted EBITDA for Q4 2024 was $307.7 million, with an adjusted EBITDA margin of 18.2%[5] - Full year 2024 net sales were $6,783.6 million, a decrease of 3% compared to 2023, with an organic decline of 2%[8] - Full year 2024 net income increased to $711.5 million from $321.1 million in 2023, with a net income margin of 10.5%[9] - Adjusted EBITDA for the full year 2024 was $1,198.8 million, with an adjusted EBITDA margin of 17.7%[9] - Operating income increased significantly to $638.1 million in Q4 2024, compared to $183.3 million in Q4 2023, marking a growth of 248.5%[23] - Net income for the year ended December 31, 2024, was $711.5 million, more than double the $321.1 million reported in 2023, representing a 121.5% increase[23] - Basic earnings per share rose to $1.05 for the year ended December 31, 2024, compared to $0.48 in 2023, an increase of 118.8%[23] Cash Flow and Leverage - Operating cash flow for Q4 2024 was $173.3 million, while free cash flow was $222.1 million[6] - Full year 2024 operating cash flow was $840.8 million, with free cash flow of $768.3 million[10] - The adjusted net leverage ratio was 3.2x as of December 31, 2024, indicating a focus on deleveraging[10] - Cash flows from operating activities for the year ended December 31, 2024, were $840.8 million, slightly down from $870.0 million in 2023[25] - Net cash provided by investing activities was $438.9 million for the year ended December 31, 2024, compared to a cash outflow of $143.7 million in 2023[25] - For the three months ended December 31, 2024, Avantor reported free cash flow of $222.1 million, compared to $201.0 million in the same period of 2023, representing an increase of 10.5%[30] - The adjusted net leverage ratio for Avantor as of December 31, 2024, was 3.2x, based on adjusted EBITDA of $1,196.7 million[31] Segment Performance - The Laboratory Solutions segment generated net sales of $4,610.1 million for the year ended December 31, 2024, down from $4,738.3 million in 2023, reflecting a decline of 2.7%[34] - The Bioscience Production segment saw net sales of $2,173.5 million for the year ended December 31, 2024, a decrease of 2.5% from $2,228.9 million in 2023[34] - Organic net sales growth for the total company was 0.7% for the three months ended December 31, 2024, despite a total net sales decline of 2.1%[34] - The Laboratory Solutions segment's organic net sales growth was -0.9% for the three months ended December 31, 2024, while the Bioscience Production segment achieved organic net sales growth of 4.1%[34] Expenses and Charges - The company reported a loss on the extinguishment of debt of $4.4 million in Q4 2024, compared to $1.0 million in Q4 2023[28] - Restructuring and severance charges amounted to $0.5 million in Q4 2024, down from $8.5 million in Q4 2023[28] - The company incurred transformation expenses of $12.3 million in Q4 2024, compared to $5.4 million in Q4 2023[28] - Interest expense, net for the year ended December 31, 2024, was $218.8 million, down from $284.8 million in 2023[28] Asset and Liability Changes - Total assets decreased to $12,114.5 million as of December 31, 2024, down from $12,972.7 million in 2023, a decline of 6.6%[24] - Current liabilities increased to $2,007.5 million in 2024, compared to $1,480.3 million in 2023, reflecting a rise of 35.4%[24] - Total stockholders' equity increased to $5,956.7 million in 2024, up from $5,252.6 million in 2023, an increase of 13.4%[24] Adjusted Metrics - Adjusted EBITDA for the year ended December 31, 2024, was $1,198.8 million, with a margin of 17.7%, compared to $1,309.1 million and a margin of 18.8% in 2023[28] - Adjusted net income for Q4 2024 was $183.9 million, a 10.9% increase from $166.7 million in Q4 2023[26] - Adjusted earnings per share (EPS) for Q4 2024 was $0.27, compared to $0.25 in Q4 2023[29] - Adjusted Operating Income for the total company was $279.4 million for the three months ended December 31, 2024, with a margin of 16.6%, compared to $274.8 million and a margin of 16.0% in the same period of 2023[35]

Core Insights - Avantor, Inc. reported a return to growth in Q4 2024, with sequential and year-over-year increases in adjusted EBITDA margin, adjusted EPS, and free cash flow conversion [2][3] - The company experienced a net sales decrease of 2% in Q4 2024 compared to Q4 2023, but achieved 1% organic growth [4][9] - For the full year 2024, net sales were $6,783.6 million, a decrease of 3% compared to 2023, with a 2% organic decline [7][8] Financial Performance - Q4 2024 net income rose to $500.4 million from $98.5 million in Q4 2023, with an adjusted net income of $183.9 million compared to $166.7 million in the prior period [5][9] - The adjusted EBITDA for Q4 2024 was $307.7 million, with an adjusted EBITDA margin of 18.2% [5][9] - For the full year 2024, net income increased to $711.5 million from $321.1 million in 2023, with an adjusted EBITDA of $1,198.8 million and an adjusted EBITDA margin of 17.7% [8][9] Cash Flow and Leverage - Operating cash flow for Q4 2024 was $173.3 million, while free cash flow was $222.1 million [6][9] - For the full year 2024, operating cash flow was $840.8 million, and free cash flow was $768.3 million [10][9] - The adjusted net leverage ratio was 3.2x as of December 31, 2024 [10] Segment Performance - The bioprocessing platform grew in high-single digits, indicating strong performance in that segment [2] - The company’s new operating model and cost transformation program are ahead of schedule, contributing to improved efficiency [3]

Core Viewpoint - Avantor, Inc. will release its fourth quarter and full year 2024 financial results on February 7, 2025, before market opens, followed by a conference call at 8:00 a.m. Eastern Standard Time to discuss the results [1] Company Overview - Avantor is a leading life science tools company and a global provider of mission-critical products and services to the life sciences and advanced technology industries [3] - The company collaborates with customers throughout the scientific journey to enable breakthroughs in medicine, healthcare, and technology [3] - Avantor's portfolio is utilized in nearly every stage of significant research, development, and production activities at over 300,000 customer locations across 180 countries [3]

Company Overview - Avantor is a leading global provider of mission-critical products and services to the life sciences and advanced technology industries [3] - The company supports customers at every stage of the scientific journey, enabling breakthroughs in medicine, healthcare, and technology [3] - Avantor's portfolio is utilized in virtually every stage of research, development, and production activities at over 300,000 customer locations across 180 countries [3] Upcoming Event - Michael Stubblefield, President and CEO of Avantor, will present at the 43rd Annual J P Morgan Healthcare Conference on January 15, 2025, at 8:15 a m Pacific Standard Time [1] - The presentation will take place at The Westin St Francis Hotel in San Francisco [1] Investor Relations - A live audio webcast of the presentation will be available on Avantor's website under the Investor section [2] - The webcast replay will be accessible for 30 days following the event [2]

Avantor (NYSE: AVTR ) is a global leader of critical products and services with world-class distribution positioned to grow mid-single digits over the long term. Industry headwinds from destocking, the IRA bill, and normalization of growth have weighed on the stock price, drivingAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses m ...

Investors with an interest in Medical Services stocks have likely encountered both Pediatrix Medical Group (MD) and Avantor, Inc. (AVTR) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings ...

RADNOR, Pa., Nov. 20, 2024 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced that President and CEO, Michael Stubblefield, will be participating in a fireside chat at the Evercore ISI HealthCONx Conference in Coral Gables, Florida on Tuesday, December 3, at 9:10 a.m. Eastern Standard Time.To hear a live audio webcast of the session, visit Events & Presentations in the ...

Avantor's new Bridgewater Innovation Center spans 60,000 square feet, doubling its previous laboratory and pilot plant capacity. Purpose-designed for collaborative work, the center houses spaces for upstream and downstream process development, dedicated analytical testing labs, and a viral vector laboratory. An expanded pilot plant supports scale-up simulations, enabling rapid customization across the entire bioprocessing workflow. "Our new Bridgewater Innovation Center is twice the size of our previous fac ...