Shares of Avanos Medical (NYSE: AVNS) surged 10.09% in pre-market trading on Wednesday following the company's impressive third-quarter earnings report that significantly surpassed analyst expectations. The medical technology company also raised its full-year guidance, further boosting investor confidence.

For the third quarter of 2025, Avanos Medical reported adjusted earnings per share of $0.22, substantially beating the analyst consensus estimate of $0.12. The company's quarterly sales reached $177.8 million, surpassing the expected $164.5 million and representing a 4.3% increase compared to the same period last year. The strong performance was primarily driven by double-digit growth in the Specialty Nutrition Solutions (SNS) segment, which saw increased demand for enteral feeding and neonate solutions.

In light of the robust results, Avanos Medical raised its full-year 2025 guidance. The company now expects annual revenue to be between $690 million and $700 million, with adjusted earnings per share projected in the range of $0.85 to $0.95. The improved outlook reflects the company's confidence in its growth strategy and market position, despite noting some uncertainty related to tariffs affecting the financial outlook. Additionally, the positive impact of the Nexus Medical acquisition is expected to benefit neonatal and pediatric intensive care units, further contributing to the company's optimistic prospects.