Avanos Medical, Inc. (NYSE:AVNS) Reports Strong Q3 Earnings

Core Insights - Avanos Medical, Inc. reported strong third-quarter earnings with an EPS of $0.22, exceeding estimates of $0.12 and the Zacks Consensus Estimate of $0.16, marking a 37.5% earnings surprise [1][2] - The company's revenue for the quarter was $177.8 million, a 4.3% increase from $170.4 million a year ago, surpassing the estimated $164.5 million [1][3] Financial Performance - The reported EPS of $0.22 represents a decrease from the previous year's EPS of $0.36, indicating challenges in maintaining earnings growth [2] - Revenue exceeded the Zacks Consensus Estimate by 6.88%, demonstrating consistent outperformance over the past four quarters [3] Segment Performance - The Specialty Nutrition Systems segment experienced double-digit growth, bolstered by the acquisition of Nexus Medical, which is expected to enhance care in NICU and PICU settings [4][6] - The Pain Management and Recovery segment also showed strong performance despite a challenging tariff environment [4][6] Financial Ratios - The company has a price-to-earnings (P/E) ratio of approximately -1.05, indicating negative earnings, while the price-to-sales ratio is about 0.71 [5] - The enterprise value to sales ratio is approximately 0.80, and the debt-to-equity ratio is low at 0.17, suggesting conservative debt use [5] - A current ratio of 2.38 indicates strong liquidity, allowing the company to effectively cover its short-term liabilities [5]