AMS Earnings: Near-Term Headwinds Easing; New Products Bode Well for the Future

Advanced Medical Solutions delivered full-year results that were slightly better than we expected, but they weren’t enough to move the needle on our fair value estimate. With consolidated revenue for 2023 rolling in at 2% in constant currency, this positive growth was better than the low-level decline we’d been expecting. However, this slight outperformance from 2023 changed little about our more optimistic expectations for 2024-27, which features mid-single-digit top-line and high-single-digit earnings growth. We anticipate the narrow-moat firm has moved beyond most of the US destocking issues and should reap the rewards of new branded product launches over the next 18 months.