Avantor Shares Climb on Higher Outlook, 2Q Revenue

Dow Jones07-29

Shares of Avantor climbed after the company raised its outlook for the year, after reporting higher-than-expected profit and sales in the second quarter.

The stock rose 13%, to $14.03, in premarket trading Wednesday. Through Tuesday's close, shares are up 8.4% year to date.

The life-science tools company said before the bell that it now expects this year's sales from its core business to stay roughly flat-anywhere from a 0.5% drop to a 0.5% gain.

It had previously guided for organic revenue to fall 0.5% to 2.5%.

Avantor also raised the low end of its adjusted earnings outlook to 80 cents a share from 77 cents a share, while maintaining the high end at 83 cents a share. Analysts polled by FactSet expected 79 cents a share.

The new outlook came as the company reported a profit of $38.1 million, or 6 cents a share, for its three months ended June 30, compared with $64.7 million, or 9 cents a share, a year earlier.

Stripping out one-time items, earnings came in at 21 cents a share. Analysts were looking for adjusted earnings of 19 cents a share.

Net sales ticked up 0.5% to $1.69 billion, topping Wall Street models for $1.61 billion.

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