Avanos Medical, Inc. (NYSE:AVNS), a leader in the medical technology sector, focusing on innovative healthcare solutions, announced its third-quarter earnings on November 5, 2025, showcasing a strong financial performance. The company reported earnings per share (EPS) of $0.22, surpassing the estimated $0.12, and actual revenue of $177.8 million, exceeding the estimated $164.5 million.
During the earnings call, key figures such as CEO David Pacitti and CFO Scott Galovan discussed the company's financial performance and strategic direction. The reported EPS of $0.22 also exceeded the Zacks Consensus Estimate of $0.16, marking a 37.5% earnings surprise. However, this is a decrease from the previous year's EPS of $0.36, indicating some challenges in maintaining earnings growth.
Avanos Medical's revenue for the quarter was $177.8 million, a 4.3% increase from the $170.4 million reported a year ago. This revenue figure exceeded the Zacks Consensus Estimate by 6.88%. The company has consistently outperformed consensus revenue estimates over the past four quarters, demonstrating its strong market position and effective strategies.
The company's Specialty Nutrition Systems segment experienced double-digit growth, supported by the acquisition of Nexus Medical. This acquisition is expected to enhance care in NICU and PICU settings. CEO David Pacitti expressed satisfaction with the company's performance, particularly in the opioid-sparing Pain Management and Recovery segment, despite a challenging tariff environment.
Financially, AVNS has a price-to-earnings (P/E) ratio of approximately -1.05, indicating negative earnings. The price-to-sales ratio is about 0.71, and the enterprise value to sales ratio is approximately 0.80. The debt-to-equity ratio is low at 0.17, suggesting conservative debt use. The current ratio of 2.38 indicates strong liquidity, allowing AVNS to cover its short-term liabilities effectively.
