Avatar Holdings, Inc. (AVTR) Tops Q4 EPS by 3c; Offers FY20 EPS Mid-Point Guidance Below Consensus

Avatar Holdings, Inc. (NYSE: AVTR) reported Q4 EPS of $0.19, $0.03 better than the analyst estimate of $0.16. Revenue for the quarter came in at $1.52 billion versus the consensus estimate of $1.53 billion.

"We were pleased to conclude 2019 with great momentum driven by strong sales across our biopharma business, continued margin expansion and robust cash flow generation,\" said Michael Stubblefield, Chief Executive Officer of Avantor. "In our first year as a public company, we made great progress in executing our growth strategy, deleveraging our balance sheet, and strengthening our capabilities to serve our customers around the world."

"For 2020, we look forward to another strong year with revenue expected to grow 4% to 6% on an organic basis, healthy margin expansion and further deleveraging. We are proud to contribute to scientific advances around the world and are excited about the opportunities ahead," Stubblefield concluded.

GUIDANCE:

Avatar Holdings, Inc. sees FY2020 EPS of $0.74-$0.79, versus the consensus of $0.79.

The Company projects organic sales to be up 4% to 6% for 2020. Adjusted EBITDA is projected to be in the range of $1.090-1.135 billion, or an increase of 6% to 10%. Guidance for full-year adjusted EPS is $0.74-0.79, up 27-36%. Free cash flow is expected to be in the range of $450-500 million, up 50-65% from 2019.

Our outlook assumes:

• Current foreign exchange rates (e.g., Euro 1.11)
• Adjusted shares outstanding of 642.7 million
• Annual effective adjusted tax rate of 25-26%

For earnings history and earnings-related data on Avatar Holdings, Inc. (AVTR) click here.

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