Avanos Medical (NYSE:AVNS) shares rose this morning on third-quarter results that beat the consensus forecast.
Shares of AVNS ticked up 3.5% at $23.20 apiece. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — ticked up by 1%.
The Alpharetta, Georgia-based pain management and chronic care company posted profits of $15.7 million. That equals 33¢ per share on sales of $202.1 million for the three months ended Sept. 30, 2022.
Avanos posted a massive bottom-line gain out of the red on sales growth of 9.8%. The company attributed its performance to incremental revenue from the acquisition of OrthogenRx.
Additionally, Avanos reported higher volume in digestive health. Still, unfavorable foreign currency translation effects and high supply chain costs affected the company.
Adjusted to exclude one-time items, earnings per share totaled 38¢. That comes in 3¢ ahead of Wall Street. Sales failed to record a similar beat as analysts expected revenues of $205.5 million.
“We are very pleased with our third quarter performance despite continuing headwinds associated with supply chain disruptions and other macro-economic factors,” Avanos CEO Joe Woody said in a news release. “We again delivered strong margin and free cash flow results building on our second quarter performance and anticipate further improvement in most of our financial metrics in the fourth quarter.”
Avanos affirmed its previously reported 2022 guidance. It expects net sales to range between $815 million and $835 million. The company projects adjusted EPS between $1.45 and $1.65.