Avantor's Q2 adjusted profit of $0.24 per share missed expectations of $0.25 per share. The company's shares fell 17.4% in early trading.
Life sciences company Avantor (NYSE:AVTR) announced its Q2 2025 earnings on Friday, revealing a slight miss in earnings per share (EPS) compared to analyst expectations. The company's adjusted EPS of $0.24 per share fell short of the consensus estimate of $0.25 per share. Despite this, Avantor's revenue of $1.68 billion exceeded expectations by $10 million, beating the forecast of $1.67 billion.
The company's shares fell 17.4% in early trading, reflecting investor concerns over the earnings miss. Avantor's stock price dropped to $11.90, nearing its 52-week low of $11.82. CEO Michael Stubblefield expressed confidence in the company's platform, stating, "Despite recent performance headwinds, I could not be more confident in the strength of our platform."
Avantor's Laboratory Solutions segment delivered sequential revenue growth, with improvements in initiatives yielding tangible results. However, the company faces challenges in the biotech sector and inflationary pressures affecting large pharmaceutical clients. Additionally, the company has launched new digital platforms and AI applications, such as Avantor Navigator, to enhance its digital buying experience.
Looking ahead, Avantor expects organic revenue growth to range from -2% to flat for the full year, with an adjusted EBITDA margin between 16.5% and 17%. The company projects adjusted EPS between $0.94 and $0.98 and anticipates free cash flow of between $550 million and $600 million. For Q3, organic revenue growth is forecasted to decline by 2% to 4%.
Key Takeaways:
- Avantor's Q2 adjusted EPS of $0.24 per share missed expectations of $0.25 per share.
- Revenue of $1.68 billion exceeded expectations by $10 million.
- The company's stock price fell 17.4% in early trading.
- CEO Michael Stubblefield expressed confidence in the company's platform.
References:
[1] https://finance.yahoo.com/news/avantor-nyse-avtr-exceeds-q2-101931463.html
[2] https://seekingalpha.com/news/4476602-avantor-slips-after-adjusted-profit-miss
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-avantor-q2-2025-misses-eps-stock-drops-93CH-4166112
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