Latest news with #MichaelStubblefield
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
02-05-2025
- Business
- Yahoo
Avantor® to Participate in Bank of America Securities 2025 Health Care Conference
RADNOR, Pa., May 2, 2025 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced that Michael Stubblefield, President and CEO, will be participating in a fireside chat at the Bank of America Securities 2025 Health Care Conference in Las Vegas on Tuesday, May 13, 2025 at approximately 10:00 a.m. Pacific Time. To hear a live audio webcast of the session, visit Events & Presentations in the Investor section of Avantor's website, A replay of the webcast will be available for 30 days. About AvantorAvantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit and find us on LinkedIn, X (Twitter) and Facebook. Investor Relations ContactAllison HosakSenior Vice President, Global Global Media ContactEric Van ZantenHead of External View original content to download multimedia: SOURCE Avantor and Financial News Sign in to access your portfolio
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
Yahoo
25-04-2025
- Business
- Yahoo
Avantor Stock Plummets as Firm's CEO Set to Leave Amid Sales Slump, Outlook Cut
Avantor's CEO is stepping down after 11 years as head of the chemical and other life sciences company. The firm missed first-quarter net sales estimates as government cutbacks hurt lab solutions sales. Avantor announced a new strategy to boost the lab sciences business, and reduced its full-year (AVTR) shares sank 16% Friday after the maker of lab chemicals and other life sciences products announced its CEO was resigning, reported weaker-than-expected net sales as government spending fell, and slashed its guidance. The company said the board and Michael Stubblefield agreed that this was the "right time to initiate a leadership transition." It added that Stubblefield will be stepping down as soon as his replacement is named, and that the board has already initiated the search and "plans to move through the process expeditiously." Stubblefield has led the firm since 2014. Separately, Avantor reported first-quarter net sales slid 6% year-over-year to $1.58 billion, missing the Visible Alpha estimate of $1.61 billion. Adjusted earnings per share (EPS) of $0.23 was in line with forecasts. Sales at its Laboratory Solutions division slumped 8% to $1.07 billion, which Stubblefield explained "was impacted by reduced demand—particularly in our Education and Government end market—following recent policy changes." Bioscience Production unit sales were down 1% to $516.4 million. Stubblefield said the company was updating its full-year outlook "to reflect ongoing funding and policy-related headwinds." He added that Avantor was "implementing a comprehensive strategy to strengthen our Lab Solutions segment and are committed to moving with urgency to improve performance across the business." In addition, the company is expanding its cost-cutting plan, which is now expected to save $400 million by the end of 2027. Avantor sees 2025 organic revenue growth in the range of minus 1% to plus 1%, compared to the previous prediction of plus 1% to plus 3%. It anticipates adjusted EBITDA margin of 17.5% to 18.5%, compared to the earlier 18.0% to 19.0%. Shares of Avantor plunged to their lowest level in five years. Read the original article on Investopedia Sign in to access your portfolio
Associated Press
19-02-2025
- Business
- Associated Press
Avantor® to Present at TD Cowen's 45th Annual Health Care Conference
RADNOR, Pa., Feb. 19, 2025 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced that President and CEO, Michael Stubblefield, will present at TD Cowen's 45th Annual Health Care Conference on Wednesday, March 5, at 11:50 a.m. Eastern Standard Time. To hear a live audio webcast of the session, visit Events & Presentations in the Investor section of Avantor's website, A replay of the webcast will be available for 30 days. About Avantor Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit and find us on LinkedIn, X (Twitter) and Facebook. Investor Relations Contact Avantor 908.329.7281 [email protected] Global Media Contact Eric Van Zanten Head of External Communications Avantor 610-529-6219
