It has been about a month since the last earnings report for Avanos Medical (AVNS). Shares have added about 5.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Avanos Medical due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Avanos Medical Q2 Earnings and Revenues Top EstimatesAvanos Medical, Inc. reported adjusted earnings per share of 13 cents in second-quarter 2020, against the Zacks Consensus Estimate of a loss of 8 cents. However, the bottom line declined 53.6% from the prior-year quarter.Revenues of the company were $163.7 million, which beat the Zacks Consensus Estimate by 10.2%. The top line, however, fell 4.9% on a year-over-year basis.Q2 Segmental AnalysisChronic CareNet revenues at this segment of $120.2 million rose 17.5% year over year.Pain ManagementThe segment reported net revenues of $43.5 million. The metric declined 37.8% on a year-over-year basis.Margin AnalysisAdjusted gross profit was $91.2 million, down 11.8% from the prior-year quarter. Adjusted gross margin was 55.7% of net revenues, down 430 bps year over year.Research and development expenses totaled $7.7 million, down 18.9% year over year. Selling, general and administrative expenses amounted to $76.9 million, down 18.8%.Adjusted operating profit in the second quarter was $12.7 million, down 34.9% from the year-ago quarter.Financial UpdateAs of Jun 30, 2020, cash and cash equivalents totaled $185 million, down 1.4% on a sequential basis.Net cash provided in operating activities for the three months ended Jun 30, 2020, totaled $1.1 million, compared with net cash utilized in operating activities of $31.9 million in the prior-year quarter.GuidanceIn view of the rapidly evolving healthcare environment and the ongoing uncertainties related to the COVID-19 pandemic, the company has withdrawn its previously issued (provided on Feb 25, 2020) full-year 2020 outlook. At this point of time the company is unable to fully quantify the scope or duration of the impact of the pandemic on its financial results.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 87.1% due to these changes.VGM ScoresCurrently, Avanos Medical has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Avanos Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AVANOS MEDICAL, INC. (AVNS): Free Stock Analysis Report To read this article on Zacks.com click here.