Life sciences company Avantor (NYSE: AVTR) will be reporting earnings this Wednesday before market hours. Here’s what to expect.
Avantor beat analysts’ revenue expectations last quarter, reporting revenues of $1.66 billion, down 1.4% year on year. It was a strong quarter for the company, with a narrow beat of analysts’ organic revenue estimates and a decent beat of analysts’ revenue 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 decline 2.6% year on year, improving from the 5.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Thermo Fisher delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 1.5%, and West Pharmaceutical Services reported revenues up 21%, topping estimates by 8.4%. Thermo Fisher traded down 8.6% following the results while West Pharmaceutical Services was up 11.6%.
Read our full analysis of Thermo Fisher’s results here and West Pharmaceutical Services’s results here.
There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 11% on average over the last month. Avantor is up 5.9% during the same time and is heading into earnings with an average analyst price target of $10.58 (compared to the current share price of $8.00).
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