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American Vanguard's (AVD) Shares Up 19% in 3 Months: Here's Why
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American Vanguard Corporation’s (AVD - Free Report) shares have gained 19% in the past three months. The company also outperformed the industry’s fall of 14.8% over the same time frame. It has also topped the S&P 500’s nearly 9.2% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look at the factors behind the stock’s price appreciation.
What’s Driving American Vanguard?
In the fourth quarter, American Vanguard saw a notable boost in revenues within its U.S. crop business. Revenues increased 11% year over year to approximately $83.4 million. Sales in the U.S. non-crop sector experienced a commendable uptick of around 10%, reaching approximately $25.2 million.
Confidence abounds within the company regarding its standing in both domestic and international markets, with ambitious aims set for a revenue growth target ranging between 8% and 12% for 2024. This is projected to yield a full-year adjusted EBITDA within the range of $70-$80 million. Such optimism is underpinned by a commitment to maintaining robust gross profit margins, stringent control over operational expenses and the optimization of factory performance.
In pursuit of a transformative agenda, American Vanguard set its sights on achieving adjusted EBITDA growth of 15% of net sales. This strategic initiative aims to generate an additional $15 million or more in adjusted EBITDA on an annual basis, with the full spectrum of its benefits expected to materialize by 2026. This transformation will be fueled by a multifaceted approach encompassing operational enhancements, commercial strategies, digital innovations and efficiencies in general and administrative functions.
American Vanguard delivered fourth-quarter earnings of 25 cents per share, up from 13 cents a year ago, matching the Zacks Consensus Estimate. The Zacks Consensus Estimate for 2024 earnings is pegged at 77 cents per share, suggesting an impressive year-over-year growth projection of 196%. There has been an upward revision of 8.5% in the consensus estimate for the current year's earnings in the past 60 days, indicating growing confidence in the company's performance trajectory. This upward momentum underscores positive market sentiment and suggests strong potential for continued growth and value creation.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 90.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 36.7% in the past year.
The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year increase. IOSP beat on earnings in each of the last four quarters, delivering an average surprise of 10.5%. The company’s shares have risen 17.7% in the past year.
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American Vanguard's (AVD) Shares Up 19% in 3 Months: Here's Why
American Vanguard Corporation’s (AVD - Free Report) shares have gained 19% in the past three months. The company also outperformed the industry’s fall of 14.8% over the same time frame. It has also topped the S&P 500’s nearly 9.2% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look at the factors behind the stock’s price appreciation.
What’s Driving American Vanguard?
In the fourth quarter, American Vanguard saw a notable boost in revenues within its U.S. crop business. Revenues increased 11% year over year to approximately $83.4 million. Sales in the U.S. non-crop sector experienced a commendable uptick of around 10%, reaching approximately $25.2 million.
Confidence abounds within the company regarding its standing in both domestic and international markets, with ambitious aims set for a revenue growth target ranging between 8% and 12% for 2024. This is projected to yield a full-year adjusted EBITDA within the range of $70-$80 million. Such optimism is underpinned by a commitment to maintaining robust gross profit margins, stringent control over operational expenses and the optimization of factory performance.
In pursuit of a transformative agenda, American Vanguard set its sights on achieving adjusted EBITDA growth of 15% of net sales. This strategic initiative aims to generate an additional $15 million or more in adjusted EBITDA on an annual basis, with the full spectrum of its benefits expected to materialize by 2026. This transformation will be fueled by a multifaceted approach encompassing operational enhancements, commercial strategies, digital innovations and efficiencies in general and administrative functions.
American Vanguard delivered fourth-quarter earnings of 25 cents per share, up from 13 cents a year ago, matching the Zacks Consensus Estimate. The Zacks Consensus Estimate for 2024 earnings is pegged at 77 cents per share, suggesting an impressive year-over-year growth projection of 196%. There has been an upward revision of 8.5% in the consensus estimate for the current year's earnings in the past 60 days, indicating growing confidence in the company's performance trajectory. This upward momentum underscores positive market sentiment and suggests strong potential for continued growth and value creation.
American Vanguard Corporation Price and Consensus
American Vanguard Corporation price-consensus-chart | American Vanguard Corporation Quote
Zacks Rank & Other Key Picks
American Vanguard currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. (ECL - Free Report) and Innospec Inc. (IOSP - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat on earnings in each of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 90.6% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL beat on earnings in each of the last four quarters, delivering an average surprise of 1.7%. The company’s shares have rallied 36.7% in the past year.
The consensus estimate for IOSP’s current fiscal year earnings is pegged at $6.72 per share, indicating a 10.3% year-over-year increase. IOSP beat on earnings in each of the last four quarters, delivering an average surprise of 10.5%. The company’s shares have risen 17.7% in the past year.