Avanos Medical’s Q4 EPS Tops Estimate by 20.8%, Shares Slide 10%
Avanos Medical reported Q4 adjusted EPS of $0.29, beating the 24-cent estimate by 20.8%, and recorded a GAAP loss of $0.03 versus a $8.63 loss year-ago. Revenues reached $180.9 million, up 0.7% year-over-year and 2.7% ahead of estimates, but shares have fallen nearly 10% in one day and 37.9% YTD.
1. Q4 Earnings and EPS Details
Avanos Medical reported adjusted EPS of $0.29 in Q4 2025, down 32.6% year-over-year but 20.8% ahead of estimates, and a GAAP loss per share of $0.03 compared to a $8.63 loss a year earlier. Gross profit declined 8.4% to $96.6 million, with the adjusted gross margin contracting 530 basis points to 53.4%.
2. Revenue and Segment Performance
Fourth-quarter revenues totaled $180.9 million, up 0.7% year-over-year and 2.7% above projections. The PM&R segment generated $61.6 million (up 1.3%) while SNS delivered $115.1 million (up 8.7%); Corporate and Other fell 67.4% to $4.2 million following the hyaluronic acid divestiture.
3. Share Price Movement and Outlook
Shares declined nearly 10% in one day and are down 37.9% year-to-date, underperforming the industry’s 8.9% drop and the S&P 500’s 7.3% gain. The pullback reflects margin compression from tariff headwinds, mixed volume trends in surgical pain products and investor concerns over longer-term growth.
4. 2026 Guidance and Financial Position
Avanos forecasts full-year 2026 net sales of $700–720 million and adjusted EPS of $0.90–1.10, compared with consensus of $696.8 million and $1.08 respectively. The company ended Q4 with $89.8 million in cash, $100.1 million in debt and generated $74.7 million of operating cash flow.