Avanos Medical (NYSE:AVNS) Issues Earnings Results, Beats Expectations By $0.05 EPS

Avanos Medical (NYSE:AVNS) announced its quarterly earnings results on Tuesday. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.05, FiscalAI reports. Avanos Medical had a positive return on equity of 6.21% and a negative net margin of 67.00%.The business had revenue of $180.90 million during the quarter, compared to the consensus estimate of $174.70 million. During the same quarter last year, the firm posted $0.43 EPS. The company’s quarterly revenue was up .7% on a year-over-year basis. Avanos Medical updated its FY 2026 guidance to 0.900-1.100 EPS.

Here are the key takeaways from Avanos Medical’s conference call:

• Avanos’s Specialty Nutrition Systems outperformed the market, growing over 8% organically in 2025 (short-term feeding up double-digits and neonatal +6%); the Nexus Medical tuck‑in contributed roughly $5M and is expected to be a double‑digit grower in 2026.
• The company expects about $30 million of tariff P&L costs in 2026 (a $12M increase versus 2025), with roughly two‑thirds China‑related, though management plans to exit syringe sourcing from China by June to mitigate future impact.
• 2026 guidance calls for net sales of $700M–$720M, consolidated mid‑single‑digit organic growth (SNS mid‑to‑high singles, PMNR low‑to‑mid singles) and adjusted EPS of $0.90–$1.10, with gross‑margin improvement expected in H2 2026 and into 2027.
• Balance sheet and cash flow remain healthy with $90M cash, $100M debt, leverage well under 1x and FY free cash flow of $43M, while planned 2026 CapEx is ~$25M to support the China‑exit and production moves to Mexico/Southeast Asia.
• Management continues portfolio reshaping and cost discipline—completed the HA divestiture, exited Game Ready rentals, is exiting IV therapy in Q1 2026, and expects ongoing operating efficiencies and targeted M&A to drive margin and growth.

Avanos Medical Stock Performance

Shares of Avanos Medical stock opened at $13.60 on Wednesday. The company’s 50 day moving average price is $12.90 and its two-hundred day moving average price is $12.04. The firm has a market capitalization of $631.31 million, a P/E ratio of -1.33 and a beta of 1.09. Avanos Medical has a fifty-two week low of $9.30 and a fifty-two week high of $16.63. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.38 and a quick ratio of 1.36.

Institutional Trading of Avanos Medical

Hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC increased its stake in shares of Avanos Medical by 46.4% in the first quarter. AQR Capital Management LLC now owns 192,864 shares of the company’s stock valued at $2,700,000 after buying an additional 61,095 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Avanos Medical by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,955 shares of the company’s stock worth $386,000 after buying an additional 1,121 shares during the period. Millennium Management LLC raised its stake in Avanos Medical by 508.3% during the first quarter. Millennium Management LLC now owns 547,740 shares of the company’s stock worth $7,849,000 after buying an additional 457,703 shares during the last quarter. Empowered Funds LLC raised its stake in Avanos Medical by 5.4% during the first quarter. Empowered Funds LLC now owns 162,182 shares of the company’s stock worth $2,324,000 after buying an additional 8,348 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Avanos Medical by 17.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 140,810 shares of the company’s stock valued at $2,018,000 after buying an additional 20,541 shares during the period. 95.17% of the stock is currently owned by institutional investors.

Key Stories Impacting Avanos Medical

Here are the key news stories impacting Avanos Medical this week:

• Positive Sentiment: Q4 beat — Avanos reported Q4 EPS of $0.29 (vs. $0.24 consensus) and revenue of $180.9M (vs. $174.7M consensus), showing the company outperformed street estimates for the quarter. Article Title
• Positive Sentiment: Full‑year highlights & cost plan — Avanos said it exceeded full‑year revenue, hit the top end of FY‑2025 EPS guidance, delivered 6% organic growth in strategic segments, and expects $15–$20M of incremental annualized savings by end‑2026 from transformation initiatives. Article Title
• Neutral Sentiment: Revenue guidance roughly in line — Avanos set FY‑2026 revenue guidance of $700M–$720M, which is near analyst estimates (roughly $704.7M), so topline expectations are not a major surprise. Article Title
• Negative Sentiment: EPS guidance below consensus — Management gave FY‑2026 EPS guidance of $0.90–$1.10, below the street midpoint (~$1.03), a key reason investors pushed the stock lower despite the quarterly beat. Article Title
• Negative Sentiment: Profitability and YoY EPS decline — Net margin remains negative (company reported a -67% net margin) and Q4 EPS declined from $0.43 a year ago to $0.29, highlighting lingering profitability pressures that concern investors. Article Title

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Zacks Research raised shares of Avanos Medical from a “strong sell” rating to a “hold” rating in a report on Monday, January 26th. Weiss Ratings restated a “sell (d-)” rating on shares of Avanos Medical in a research report on Monday, December 22nd. Finally, Wall Street Zen raised Avanos Medical from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 8th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce”.

About Avanos Medical

Avanos Medical is a global medical technology company that develops and markets a broad portfolio of medical devices intended to improve patient outcomes in hospital, outpatient and post-acute care settings. The company’s products focus on three core therapy areas—pain management, enteral feeding and respiratory care—designed to help clinicians manage post-operative pain, deliver nutrition support and assist breathing for patients across a variety of acute and chronic conditions.

In its pain management segment, Avanos offers both non-opioid drug delivery systems and cryoanalgesia devices, including ambulatory infusion pumps and cooled radiofrequency ablation platforms.