Avanos Medical (NYSE: AVNS) saw its stock surge 5.09% in pre-market trading on Tuesday following the release of its first-quarter 2025 financial results. The medical device company reported earnings that significantly exceeded analyst expectations, driving investor optimism.

Avanos Medical announced adjusted earnings of $0.26 per share for Q1, surpassing the analyst consensus estimate of $0.18 by an impressive 44.44%. This represents a substantial 36.84% increase from the $0.19 per share reported in the same period last year. The company's quarterly revenue also beat expectations, coming in at $167.50 million, 3.55% above the analyst estimate of $161.75 million and showing a modest 0.84% year-over-year growth.

Other key financial metrics for the quarter included gross profit of $89.8 million, operating income of $10.3 million, and net income of $6.6 million. The company's EBITDA for Q1 stood at $19.9 million. Despite the challenging economic environment, Avanos Medical maintained its full-year 2025 revenue guidance of $665 million to $685 million, signaling confidence in its future performance. The company also provided an outlook for fiscal year 2025 adjusted EPS in the range of $0.75 to $0.95, with GAAP EPS expected between $0.33 and $0.56.