The following variance table shows Avantor's performance in the quarter versus my estimates.
Exhibit 1. 1Q20 Earnings Versus Viceni Estimates
Here are the key takeaways from the quarter:
- 4.1% normalized revenue growth beat my 0.6% estimate and even exceeded prior guidance. Management pointed to a tailwind of 50-100 bps from COVID due to demand for protective equipment, reagents, and possibly some stocking. As I anticipated, management confirmed that most of their facilities have essential status. Moreover, supply chains remain mostly intact.
- The negative impact from COVID was centered on the closure of academic labs (as