Avient Reports Strong Q2 2024 Growth, Raises Full-Year Outlook
Avient Corporation (NYSE: AVNT), a leading provider of specialized and sustainable material solutions, reported a positive second quarter for 2024 with sales of $850 million, marking a 3% increase over the same period last year. The company has also raised its full-year guidance, anticipating continued growth across various markets.
Key Takeaways
- Avient's Q2 2024 sales reached $850 million, a 3% increase year-over-year.
- Organic sales grew by 5%, driven by market share gains, new product specifications, and inventory restocking.
- Adjusted EBITDA margin improved to 16.9%, with adjusted earnings per share at $0.76, a 21% increase from the previous year.
- The company expects a 9% increase in third-quarter earnings per share and has raised its full-year adjusted EBITDA guidance to $515 million to $540 million.
- Avient anticipates year-over-year growth driven by volume growth from program wins, application wins, and sales strategy changes.
- The company is focusing on sustainability, reporting a reduction in greenhouse gas emissions and improved ratings from independent agencies.
Company Outlook
- Avient projects third-quarter earnings per share of $0.62 and full-year adjusted earnings per share in the range of $2.55 to $2.70. Full-year adjusted EPS guidance represents 8% to 14% growth over the previous year.
Bearish Highlights
- Input costs saw a $35 million deflation in the first half of the year, but inflation in raw materials is expected to offset this benefit in the second half.
- A $30 million headwind from variable compensation is anticipated in the latter half of the year.
Bullish Highlights
- Growth in packaging, consumer, building and construction, and healthcare markets. Telecommunications sales are expected to return to growth in the second half of the year, with improving trends in the energy market.
Misses
- Challenges faced in telecommunications and energy markets, though improvements are anticipated later in the year.
Q&A Highlights
- CEO Ashish Khandpur emphasized the company's focus on volume growth, organic growth, innovation, and leadership development.
- The hiring of a Chief Technology Officer to drive innovation and improve R&D structures.
- Expectations for margin expansion in the second half of the year, with pricing increases anticipated.
In conclusion, Avient Corporation is demonstrating robust performance with notable growth in sales and earnings per share. The company's strategic focus on innovation, market share gains, and sustainability initiatives are expected to drive further growth. With an optimistic outlook for the remainder of the year, Avient is positioning itself for continued success in the materials industry.
