Avient Corporation AVNT announced the pricing of its previously-disclosed offering of $650 million in total principal amount of senior notes due 2031. These notes, exempt from registration under the Securities Act of 1933, will carry an interest rate of 6.25% annually and be issued at 100% of their principal value. The transaction is expected to close on Sept. 19, 2024, pending customary closing conditions.
AVNT plans to use the proceeds from this offering, along with existing cash, to fully redeem its outstanding 5.75% senior notes due 2025 and cover associated fees and expenses.
The company ended the second quarter with cash and cash equivalents of $489.4 million. Long-term debt was $1,420.8 million at the end of the quarter.
In the past year, Avient’s shares have appreciated 21.5% against the industry’s 7.4% decline in the same period.
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The company’s second-quarter adjusted earnings per share (EPS) of 76 cents exceeded the Zacks Consensus Estimate of 72 cents, driven by growth across all regions and most end markets. Avient posted revenues of $849.7 million in the second quarter, surpassing the Zacks estimate of $841.2 million and up from $824.4 million in the same period last year.
For the third quarter, Avient expects adjusted EPS of 62 cents, calling for a 9% year-over-year increase. Both business segments are projected to drive organic sales growth. Although the demand outlook for the second half remains consistent with earlier forecasts, strong second-quarter results have propelled the company to revise its full-year guidance. AVNT anticipates adjusted EBITDA of $515-$540 million, up from the previous range of $510-$535 million. It raised its adjusted EPS forecast to $2.55-$2.70 from the prior view of $2.50-$2.65.
AVNT remains committed to its growth strategy, focusing on delivering innovative materials and processing solutions that align with its sustainability goals while driving continued progress in the second half of the year.
Avient Corporation Price and Consensus
Avient Corporation price-consensus-chart | Avient Corporation Quote
Zacks Rank & Key Picks
AVNT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Newmont Corporation NEM, Carpenter Technology Corporation CRS and Eldorado Gold Corporation EGO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82 per share, indicating a rise of 75% from the year-ago level. The consensus mark for NEM’s earnings has increased 14% in the past 60 days.The stock has gained nearly 35.4% in the past year.
The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’ earnings beat the consensus estimate in each of the last four quarters, the average earnings surprise being 15.9%. The stock has rallied nearly 119% in the past year.
The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 73.3% in the past year.
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