Life sciences company Avantor (NYSE: AVTR) will be reporting results this Wednesday before market open. Here’s what investors should know.
Avantor beat analysts’ revenue expectations last quarter, reporting revenues of $1.69 billion, flat year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Is Avantor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Avantor’s revenue to grow 1.1% year on year, a reversal from the 5.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Avantor has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Avantor’s peers in the life sciences tools & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Thermo Fisher delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 1.4%, and Danaher reported revenues up 8.3%, in line with consensus estimates. Thermo Fisher traded down 1.6% following the results while Danaher was up 2.4%.
Read our full analysis of Thermo Fisher’s results here and Danaher’s results here.
There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 3.1% on average over the last month. Avantor is up 11.8% during the same time and is heading into earnings with an average analyst price target of $15.50 (compared to the current share price of $17.10).
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