Overview

* Avantor ( AVTR ) Q3 net sales decline 5.3% to $1.62 bln, missing analyst expectations

* Company reports Q3 net loss due to $785 mln goodwill impairment charge

* Adjusted EPS for Q3 meets analyst expectations at $0.22

* Avantor ( AVTR ) announces $500 mln share repurchase authorization

Outlook

* Avantor ( AVTR ) announces $500 mln share repurchase program to enhance shareholder value

* Company focuses on strategic investments in manufacturing and supply chain

* Avantor ( AVTR ) aims to improve execution and financial performance amid macroeconomic challenges

Result Drivers

* GOODWILL IMPAIRMENT - $785 mln non-cash goodwill impairment charge on Distribution unit due to market conditions and financial performance

* STRATEGIC CHANGES - Co is evolving its go-to-market approach and investing in manufacturing and supply chain to improve performance

* FOREIGN CURRENCY IMPACT - Foreign currency translation had a positive impact of 2.2% on sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $1.62 $1.64

bln bln (18

Analysts

)

Q3 Meet $0.22 $0.22

Adjusted (19

EPS Analysts

)

Q3 Net -$711.80

Income mln

Q3 Gross $526.50

Profit mln

Q3 -$648.80

Operatin mln

g Income

Q3 -$689.50

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

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

* Wall Street's median 12-month price target for Avantor Inc ( AVTR ) is $14.06, about 7.3% below its October 28 closing price of $15.08

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

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(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.)