Latest news with #AVTR
Business Insider
3 days ago
- Business
- Business Insider
Avantor (AVTR) in the Hot Seat as Activist Investor Presses for Big Changes or Sale
U.S.-based biotechnology company Avantor (AVTR) is under pressure as activist investor Engine Capital pushes for major changes. According to the Wall Street Journal, Engine Capital is expected to disclose its roughly 3% stake in Avantor on Monday. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. For context, Avantor is a life sciences company that supplies products and services for research, biopharma manufacturing, and healthcare. Activist Investor Calls for Overhaul or Sale According to market reports, Engine Capital plans to pressure Avantor to either sell the company or make changes such as refreshing its board, buying back shares, and selling non-core assets. The investment firm estimates Avantor could fetch $17–$19 per share, compared to Friday's closing price of $11.50. The firm also believes Avantor's shares could reach up to $26 by the end of 2027 if the company implements the recommended changes on its own. Avantor Struggles Amid Slowing Demand Avantor is struggling with weaker demand from reduced government funding in research and education under the Trump administration. Last week, the company reported mixed Q2 2025 results. Avantor reported net sales of $1.68 billion, down 1% from last year, with FX gains offset by M&A-related declines, leaving organic revenue flat. Year-to-date, AVTR stock has fallen more than 45%. This steep decline has set the stage for activist intervention. Notably, Engine Capital's push could boost shareholder value through a premium takeover or major strategic changes. Is Avantor a Good Stock to Buy? According to TipRanks, AVTR stock has received a Moderate Buy consensus rating based on eight Buys and 10 Holds assigned in the last three months. The average Avantor stock price target is $14.70, suggesting a potential upside of 28% from the current level.
Yahoo
13-06-2025
- Business
- Yahoo
2 Profitable Stocks to Target This Week and 1 to Brush Off
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up. Trailing 12-Month GAAP Operating Margin: 16.2% With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries. Why Is AVTR Not Exciting? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Sales are projected to be flat over the next 12 months and imply weak demand Overall productivity fell over the last two years as its plummeting sales were accompanied by a decline in its adjusted operating margin Avantor's stock price of $13.46 implies a valuation ratio of 12.3x forward P/E. If you're considering AVTR for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: 19.3% Launched in 1999 from a rented one-bedroom apartment in San Francisco by Marc Benioff and his three co-founders, Salesforce (NYSE:CRM) is a software-as-a-service platform that helps companies access, manage, and share sales information such as leads. Why Are We Fans of CRM? User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs Healthy operating margin of 19.3% shows it's a well-run company with efficient processes, and its operating leverage amplified its profits over the last year Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends Salesforce is trading at $266.01 per share, or 6.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Trailing 12-Month GAAP Operating Margin: 8.4% Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars. Why Should CVNA Be on Your Watchlist? Retail Units Sold have increased by an average of 13.8% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features Incremental sales significantly boosted profitability as its annual earnings per share growth of 45% over the last three years outstripped its revenue performance Free cash flow margin increased by 30.2 percentage points over the last few years, giving the company more capital to invest or return to shareholders At $317.39 per share, Carvana trades at 22.3x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Why Avantor, Inc. (NYSE:AVTR) Could Be Worth Watching
Avantor, Inc. (NYSE:AVTR), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$17.68 at one point, and dropping to the lows of US$11.94. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Avantor's current trading price of US$13.04 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Avantor's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Great news for investors – Avantor is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 12.42x is currently well-below the industry average of 32.36x, meaning that it is trading at a cheaper price relative to its peers. However, given that Avantor's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. See our latest analysis for Avantor Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Avantor, it is expected to deliver a negative earnings growth of -17%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. Are you a shareholder? Although AVTR is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to AVTR, or whether diversifying into another stock may be a better move for your total risk and return. Are you a potential investor? If you've been keeping tabs on AVTR for some time, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future. If you want to dive deeper into Avantor, you'd also look into what risks it is currently facing. Be aware that Avantor is showing 3 warning signs in our investment analysis and 2 of those make us uncomfortable... If you are no longer interested in Avantor, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-05-2025
- Business
- Yahoo
AVTR Q1 Earnings Call: CEO Transition and Margin Focus Amid Weak Market Conditions
Life sciences company Avantor (NYSE:AVTR) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 5.9% year on year to $1.58 billion. Its non-GAAP profit of $0.23 per share was in line with analysts' consensus estimates. Is now the time to buy AVTR? Find out in our full research report (it's free). Revenue: $1.58 billion vs analyst estimates of $1.61 billion (5.9% year-on-year decline, 1.6% miss) Adjusted EPS: $0.23 vs analyst estimates of $0.23 (in line) Adjusted EBITDA: $269.5 million vs analyst estimates of $277.4 million (17% margin, 2.8% miss) Operating Margin: 9.3%, in line with the same quarter last year Free Cash Flow Margin: 5.1%, down from 6.4% in the same quarter last year Organic Revenue fell 2.1% year on year (-6.3% in the same quarter last year) Market Capitalization: $8.19 billion Avantor's first quarter results reflected ongoing challenges across its core markets, with management candidly acknowledging underperformance in revenue, particularly in the Lab Solutions segment. CEO Michael Stubblefield highlighted that customer caution in education, government, and early-stage biotech, along with policy changes and funding cuts, weighed on demand. In response, leadership is executing a series of targeted actions to regain momentum, including supply chain improvements, digital platform upgrades, and a renewed focus on account acquisition under Corey Walker, the newly onboarded President of Lab Solutions. Looking ahead, management's guidance incorporates persistent market headwinds but leans on cost transformation initiatives and operational discipline to protect margins and cash flow. Stubblefield stated, 'We are not satisfied with our growth and are taking aggressive actions to reignite the top line regardless of the macro backdrop.' The company's updated outlook assumes continued caution in public sector spending and uncertainty around tariffs, but management expects incremental savings from expanded cost programs to drive margin stability even if revenue remains pressured. Avantor's leadership addressed both internal and external factors behind first quarter results and outlined specific remediation steps. Management emphasized the need to control what is within their reach, including operational efficiency and strategic investments, while recognizing the impact of market-wide funding pressures and competition. CEO Transition Announced: Michael Stubblefield will step down as CEO when a successor is named. The Board seeks a leader with a proven growth record, signaling an intent to reset strategy and leadership focus. Lab Solutions Weakness: Reduced demand from academic, government, and early-stage biotech customers—attributed to U.S. policy changes and funding cuts—drove underperformance in Lab Solutions. Management noted increased competition, with some customer volume shifting to rivals. Cost Transformation Expansion: Avantor expanded its multiyear cost savings program, targeting $400 million in annual run-rate savings by 2027 (up from $300 million by 2026). The initiative aims to offset external headwinds and support margin stability. Digital and Pricing Initiatives: The company accelerated the rollout of an AI-enabled e-commerce platform and revamped its pricing strategy using digital tools, aiming to improve customer experience and profitability. The first phase of this pricing transformation is scheduled to go live later in the quarter. Strength in Bioprocessing Order Book: While Bioscience Production faced headwinds in controlled environment consumables, management reported strong growth in process ingredients and single-use offerings, with a healthy order book supporting expectations for improvement in the second quarter. Management's outlook for the rest of the year centers on persistent demand headwinds, ongoing cost discipline, and targeted investments in digital capabilities to offset external pressures and drive operational improvement. Market Uncertainty Remains: The company expects continued caution in education and government, muted funding for early-stage biotech, and ongoing competitive intensity, all of which may constrain top-line growth. Tariff and Policy Risks: Future performance will depend on how effectively Avantor navigates evolving global trade policies and tariff-related costs, particularly with 2% cost of goods sold exposure to China. Management is working to offset potential impacts through supply chain adjustments and pricing. Cost Initiatives as a Buffer: The expanded cost transformation program is expected to deliver incremental margin improvement and support free cash flow, even if revenue remains subdued. Early digital investments, including the AI-enabled e-commerce platform, are intended to enhance efficiency and strengthen customer retention. Michael Ryskin (Bank of America): Asked about the step-up in second quarter guidance and whether the improvement was due to timing or underlying market changes. Management attributed it to typical seasonal strength and timing, emphasizing a balanced and prudent outlook. Vijay Kumar (Evercore): Sought clarity on Bioprocessing demand, especially for controlled environment consumables. CEO Stubblefield explained demand weakness was due to customers optimizing usage in response to macro headwinds but expressed confidence in the order book and ongoing corrective actions. Rachel Vatnsdal Olson (JPMorgan): Probed for details on declines in academic and government equipment and consumables, and how these trends are reflected in guidance. Management confirmed both segments remain under pressure and current trends are assumed to persist for the year. Daniel Brennan (TD Cowen): Pressed on the impact of U.S.–China tariffs and how much of the exposure is included in guidance. CFO Brent Jones said no material impact from tariffs is assumed, with mitigation efforts underway, and provided context on alternative sourcing and flexibility. Luke Sergott (Barclays): Inquired about the scope of business transformation in Lab Solutions and whether changes address portfolio gaps or competitive weaknesses. Management emphasized cross-functional improvements, new leadership, and digital investments to drive commercial performance and customer retention. In upcoming quarters, the StockStory team will be monitoring (1) the effectiveness of digital and pricing initiatives in accelerating Lab Solutions growth, (2) any improvement in demand from academic, government, and biotech customers as funding environments evolve, and (3) execution of the expanded cost transformation program and its impact on margins and cash flow. Progress in mitigating tariff exposure and the outcome of the CEO transition will also be critical signposts for the company's trajectory. Avantor currently trades at a forward P/E ratio of 11×. Should you load up, cash out, or stay put? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
29-04-2025
- Business
- Yahoo
Why Avantor, Inc. (AVTR) Crashed on Monday
We recently published an article titled . In this article, we are going to take a look at where Avantor, Inc. (NYSE:AVTR) stands against the other stocks. A lackluster trading persisted on the stock market on Monday, with Wall Street's major indices finishing mixed, as investors continued to digest and reposition portfolios ahead of more corporate earnings results. Among the bellwether indices, only the Nasdaq finished in the red, dropping 0.10 percent. In contrast, the Dow Jones grew by 0.28 percent, and the S&P 500 inched up by 0.06 percent. Meanwhile, 10 companies defied a predominantly optimistic market. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A team of scientists working together to develop a new lab product or process. Avantor, Inc. (NYSE:AVTR) dropped its share prices by 3.40 percent on Monday to end at $12.49 each as investors soured on its chief executive's resignation amid the dismal earnings performance and lower outlook for the year. According to the company, its CEO, Michael Stubblefield, is set to step down from his position as soon as the company names his replacement. He led the company's operations for 11 years. Stubblefield said that Avantor, Inc. (NYSE:AVTR) updated its full-year 2025 outlook "to reflect ongoing funding and policy-related headwinds,' with organic revenues now pegged to grow or drop by 1 percent year-on-year as compared with the 1 to 3 percent growth expectations previously. Adjusted EBITDA, meanwhile, is anticipated to increase by 17.5 percent to 18 percent, a reduction from the 18 to 19 percent earlier projected. Overall AVTR ranks 4th on our list of the worst performing stocks on Monday. While we acknowledge the potential of AVTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AVTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
