Shares of Avanos Medical (NYSE: AVNS) surged 10.09% in Wednesday's trading session following the release of its impressive third-quarter 2025 financial results, which significantly exceeded analyst expectations. The medical technology company reported strong sales growth and raised its full-year guidance, boosting investor confidence and driving the stock higher.
For the third quarter, Avanos Medical posted adjusted earnings per share of $0.22, nearly doubling the analyst consensus estimate of $0.12. The company's quarterly sales reached $177.8 million, surpassing the expected $164.5 million and representing a 4.3% increase compared to the same period last year. The robust performance was primarily driven by double-digit growth in the Specialty Nutrition Solutions (SNS) segment, which saw increased demand for enteral feeding and neonate solutions.
In light of the strong results, Avanos Medical raised its full-year 2025 guidance, further fueling the stock's upward momentum. The company now expects annual revenue to be between $690 million and $700 million, with adjusted earnings per share projected in the range of $0.85 to $0.95. This improved outlook reflects the company's confidence in its growth strategy and market position, despite ongoing challenges such as tariff uncertainties. The positive earnings surprise and optimistic forward guidance have clearly resonated with investors, as evidenced by the significant stock movement during the trading session.
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