Zacks Research Lowers Earnings Forecast for Avanos Medical

Analysts at Zacks Research have revised their earnings estimates for Avanos Medical, Inc. (NYSE:AVNS) for the fiscal year 2025. In a report released on November 26, 2023, the firm projected earnings per share (EPS) of $0.89, a decrease from their previous estimate of $0.92. Currently, Zacks maintains a “Hold” rating on the stock, which has seen mixed reviews from other analysts.

The consensus estimate for Avanos Medical’s full-year earnings stands at $1.32 per share. Zacks Research has also provided specific quarterly earnings estimates for Avanos Medical: $0.24 for Q4 2025, $0.23 for Q1 2026, $0.22 for Q2 2026, $0.27 for Q3 2026, and $0.36 for Q4 2026. For the full fiscal year 2026, Zacks expects earnings of $1.08 per share, with projections for the following years suggesting $0.33 for Q1 2027, $0.32 for Q2 2027, $0.26 for Q3 2027, and $1.24 for FY2027.

On November 5, 2023, Avanos Medical reported its most recent earnings, achieving an EPS of $0.22 for the quarter, surpassing analysts’ expectations of $0.12 by $0.10. The company’s revenue for the quarter totaled $177.80 million, exceeding estimates of $164.50 million. Avanos Medical’s net margin remains challenging at -67.00%, though it reported a positive return on equity of 6.21%.

Comparatively, the company posted an EPS of $0.33 during the same period last year. For fiscal year 2025, Avanos Medical set guidance between $0.850 and $0.950 EPS.

In addition, several other research firms have expressed their views on Avanos Medical. Weiss Ratings reiterated a “sell” rating on the shares on November 25, 2023, while Wall Street Zen upgraded the stock from “buy” to “strong-buy” on November 8, 2023. Currently, one analyst has rated the stock as a hold, while another has assigned it a sell rating. Data from MarketBeat.com indicates that the average rating for Avanos Medical is “Reduce.”

Stock performance has also been notable; AVNS opened at $11.74 on Monday, with a market capitalization of $544.97 million and a price-to-earnings ratio of -1.15. The stock has fluctuated between a 52-week low of $9.30 and a high of $19.91. Avanos Medical’s financial metrics include a debt-to-equity ratio of 0.12, a current ratio of 2.38, and a quick ratio of 1.36.

Recent insider activity includes a sale by Kerr Holbrook, Senior Vice President, who sold 15,000 shares on November 18, 2023, at an average price of $11.00, resulting in a total transaction value of $165,000. Post-sale, Holbrook retains 83,860 shares, valued at approximately $922,460. This transaction marked a decline of 15.17% in his ownership of the stock. Insiders currently hold 2.64% of the company’s shares.

Institutional investment in Avanos Medical remains robust, with various hedge funds adjusting their positions. Armistice Capital LLC recently acquired a new stake valued at approximately $28.66 million. T. Rowe Price Investment Management Inc. increased its stake by 24.8%, now holding 3,757,576 shares worth $53.85 million. Millennium Management LLC expanded its holdings by a significant 312.4%, now owning 896,242 shares valued at $10.36 million. Other notable increases came from Ameriprise Financial Inc. and Citadel Advisors LLC, reflecting strong institutional interest as they now own 95.17% of the company’s stock.

Avanos Medical, based in North America, Europe, and other regions, specializes in medical device solutions, particularly chronic care products in digestive health. Its portfolio includes products like Mic-Key enteral feeding tubes and other patient feeding solutions. As the company navigates these financial adjustments and market dynamics, investors will be closely monitoring upcoming earnings reports and guidance updates.