RADNOR, Pa. – Avantor, Inc. (NYSE: NYSE:), a global provider of mission-critical products and services to the life sciences and advanced technology sectors, reported a slight uptick in its stock by 0.64% after announcing first-quarter earnings that modestly exceeded analyst expectations.
The company posted adjusted earnings per share (EPS) of $0.22, just above the $0.20 consensus. Meanwhile, revenue met the analyst projections, coming in at $1.68 billion for the quarter.
In comparison to the same period last year, Avantor experienced a 5.6% decline in net sales, with organic sales dropping by 6.3%. Despite the decrease in sales, the company’s leadership remains positive.
“The year is off to a good start as first quarter organic revenue growth was in line with our guidance and disciplined execution drove outperformance on margins and profitability,” said Michael Stubblefield, President and Chief Executive Officer. He also highlighted the company’s progress in implementing a new operating model and a multi-year cost transformation initiative, which aims to unlock efficiencies and better align with customer needs.
The company’s net income saw a significant decrease to $60.4 million from $121.5 million in the first quarter of the previous year. The adjusted net income also fell to $150.6 million from $195.4 million in the prior year’s comparable period. Despite these declines, Avantor’s adjusted EBITDA stood at $283 million with a margin of 16.8%, and the adjusted operating income margin was reported at 15.4%.
The Laboratory Solutions segment reported a 3.8% decrease in net sales, while the Bioscience Production segment experienced a more pronounced 9.5% drop. Both segments also saw declines in their adjusted operating income and margins compared to the first quarter of the previous year.
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