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Avantor Inc. (NYSE:AVTR) stock is trading after reporting worse-than-expected third-quarter 2025 adjusted earnings of 22 cents, below the consensus of 23 cents. The life science tools company reported sales of $1.62 billion, slightly below the consensus of $1.65 billion. Sales fell 5.3% year over year. Foreign currency translation had a positive impact of 2.2%, and M&A had an adverse impact of 2.8%, resulting in a 4.7% organic sales decline. Laboratory Solutions sales were $1.09 billion, a reported 6.4% decrease. Sales decreased by 4.9% organically. The segment sees continued end-market uncertainty related to basic research funding. Also Read: Avantor Stock Jumps As Activist Investor Urges Sale, Board Shake-Up, And Cost Cuts Bioscience Production sales were $527.3 million, a reported decrease of 2.9%, and a 4.3% sales decrease on an organic basis. The company added that operational headwinds continue to impact throughput. “To position Avantor for success in any macroeconomic environment, we are making decisive, meaningful changes aimed at improving execution, accountability, and financial performance,” said Emmanuel Ligner, president and CEO. The company announced $500 million share repurchase authorization, reflecting confidence in cash generation and commitment to driving long-term shareholder value. Guidance Avantor lowered its fiscal 2025 adjusted earnings per share from 94-98 cents to 88-92 cents compared to the consensus of 95 cents. The company expects organic revenue to decline between 3.5% and 2.5%, compared to the prior range of 2.0% to +0% and an adjusted EBITDA margin of mid-16%’s versus the previous expectation of 16.5%-17.0%. Analyst Take “While we acknowledge that Avantor has a possible path to outperformance as end-markets continue to return and more of the now $400 million in targeted cost savings take hold, we think the company's below-peer growth and margin profile make the discount to peers warranted at this time,” William Blair wrote. Analyst Matt Larew maintains a Market Perform rating for the stock. Price Action: AVTR stock is down 18.53% at $12.29 at the last check on Wednesday. Read Next: United Microelectronics Exec Says Growth On Track Despite Margins Cooling Off Photo: Shutterstock
