Overview

* Avanos Q2 2025 net sales rise 1.9%, beating analyst expectations, per LSEG data

* Net loss of $76.8 mln due to $77.0 mln goodwill impairment charge

* Adjusted EPS for Q2 was $0.17, down from $0.34 last year

* Co maintains 2025 revenue guidance of $665 mln to $685 mln

Outlook

* Avanos maintains 2025 revenue guidance of $665 mln to $685 mln

* Company expects 2025 adjusted EPS between $0.75 and $0.95

* Guidance includes impact of HA divestiture

* Company cites tariff impact as a risk to financial results

Result Drivers

* SPECIALTY NUTRITION - Strong demand in SNS segment drove 1.9% sales increase

* RFA SALES - Growth in radiofrequency ablation generator sales boosted procedure volume

* SURGICAL PAIN DECLINE - Lower volume in surgical pain and recovery portfolio impacted overall performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $175 mln $165.50

mln (1

Analyst)

Q2 Net -$76.80

Income mln

Q2 -$64.50

EBITDA mln

Q2 Gross $92.10

Profit mln

Q2 -$74.50

Operatin mln

g Income

Q2 -$75.90

Pretax mln

Profit

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)