Avanos Medical, Inc. (NYSE:AVNS) reported fourth-quarter results that came in ahead of Wall Street expectations on both profit and revenue, though the company’s shares were little changed in after-hours trading following the release.
The medical device maker posted adjusted earnings per share of $0.29, exceeding the analyst consensus estimate of $0.25 by $0.04. Quarterly revenue totaled $180.9 million, beating forecasts of $169 million and rising 0.7% compared with the same period a year earlier.
Growth was primarily supported by the Specialty Nutrition Systems division, where sales increased 8.7% year-on-year to $115.1 million. Revenue in the Pain Management and Recovery segment also improved, climbing 1.3% to $61.6 million.
“I’m very pleased with our fourth quarter and full-year results, which demonstrate meaningful progress on our strategic priorities,” said David Pacitti, Avanos’ chief executive officer. “Our organic growth remains healthy and positions us well for 2026.”
Looking ahead, Avanos guided fiscal 2026 adjusted earnings to a range of $0.90 to $1.10 per share, with the midpoint of $1.00 aligning with analyst expectations. The company projected annual revenue between $700 million and $720 million.
For full-year 2025, Avanos reported net sales of $701.2 million, representing a 1.9% increase from 2024, alongside adjusted diluted earnings per share of $0.94.
The company recorded a GAAP diluted loss per share of $1.57, largely driven by a $77 million goodwill impairment charge recognized in the second quarter. Free cash flow for the year totaled $43.1 million, down from $82.9 million in the prior year.
Avanos also unveiled expanded transformation initiatives aimed at generating between $15 million and $20 million in incremental annualized cost savings by the end of 2026.