What caused AVNS's Q3 2024 earnings miss?

Avanos Medical's Q3 2024 earnings miss can be attributed to a combination of factors: 1. **Revenue Shortfall**: The company's total revenue for Q3 2024 was $170.4 million, which fell short of the expected revenue. This shortfall, amounting to -4.93 million, indicates a significant gap between actual and projected earnings. |code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code| |---|---|---|---|---|---|---| |AVNS|AVNS.N|Avanos Medical|2023 Q4||1.733E8|169| |AVNS|AVNS.N|Avanos Medical|2024 Q1||1.661E8|169| |AVNS|AVNS.N|Avanos Medical|2024 Q2||1.717E8|169| |AVNS|AVNS.N|Avanos Medical|2024 Q3|-4930000|1.704E8|169| 2. **Earnings Estimate Decrease**: Zacks Research, a leading equity research firm, recently decreased its Q3 2024 earnings estimates for Avanos Medical. The new estimate calls for earnings per share (EPS) of $0.36, down from the previous estimate of $0.38. This downward revision suggests that the company's performance is not meeting analysts' expectations. 3. **Prior Period Performance**: Avanos Medical's Q2 2024 earnings report showed a mixed financial picture. While the company reported a net income of $4.30 million and a profit margin of 2.5%, the EPS was $0.094, which is relatively low compared to the previous year's EPS of $0.092 loss in Q2 2023. This indicates that the company's performance has been inconsistent, which may have contributed to the Q3 2024 earnings miss. In summary, Avanos Medical's Q3 2024 earnings miss can be attributed to a combination of lower-than-expected revenue and a decrease in earnings estimates. The company's inconsistent performance over the past quarters may also have played a role in the recent earnings shortfall.