Avanos Medical Inc

Avanos Medical shares have climbed 122% year to date, far outpacing the industry's 18.3% decline and the S&P 500's 7.4% rise, driven by robust Specialty Nutrition Systems performance and a pending $1.27 billion acquisition by American Industrial Partners. The company's Specialty Nutrition segment delivered double-digit organic revenue growth in the first quarter of fiscal 2026, fueled by high demand for enteral feeding and neonate solutions, while the integration of Nexus Medical has exceeded expectations. However, Avanos faces $30 million in tariff-related costs this fiscal year, a $12 million increase from fiscal 2025, largely tied to neonatal products sourced from China, and its Pain Management and Recovery segment posted an operating loss of $1.8 million in the same quarter. The Zacks Consensus Estimate for fiscal 2026 earnings has edged down 0.9% over the past 60 days to $1.06 per share, and second-quarter revenue is pegged at $173.5 million, implying a 0.8% year-over-year decline. Avanos is exiting its IV therapy business and China-based syringe manufacturing by mid-2026 to mitigate tariff exposure, while aiming for $1 billion in revenues by fiscal 2030.