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American Vanguard (AVD) Q1 Earnings Beat, Sales Miss Estimates
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American Vanguard Corporation (AVD - Free Report) profits for first-quarter 2018 were around $4.7 million or 16 cents per share, up around 36.4% from roughly $3.5 million or 12 cents a year ago. Earnings per share beat the Zacks Consensus Estimate of 14 cents.
Revenues surged 47.2% year over year to $104.1 million in the reported quarter. The figure however, missed the Zacks Consensus Estimate of $108 million. Increase in sales was mainly attributable to acquisitions and gain in AMVAC’s traditional base business.
The company’s net sales from the United States also went up 33.6% year over year to $69.8 million while international revenues rose 86.1% to $34.3 million.
Per the company, overall financial results in the quarter considerably improved on the back of product and company acquisitions it made last year along with its diversified presence in several markets.
American Vanguard Corporation Price, Consensus and EPS Surprise
Revenues from American Vanguard’s insecticides business climbed 8.8% year over year to $41.3 million in the reported quarter.
Sales from the herbicides/soil fumigants/fungicides business jumped around 60.8% to $32.2 million in the quarter.
Revenues from the other business, including plant growth regulators and distribution, surged more than five-fold to $17.8 million.
Sales from the non-crop business surged 37.3% to $12.8 million in the quarter.
Financials
American Vanguard ended the quarter with cash and cash equivalents of $13 million, up around 20.6% year over year. Long-term debt was $90.3 million, up 16.6% year over year.
Outlook
American Vanguard expects growth to continue through the year for its herbicide products, Central American region and non-crop business. The company also expects strong demand for its cotton products, strong sales of Dibrom mosquito adulticide, vegetables and fruits and stable demand for corn products. American Vanguard is scheduled to launch several new products from its development pipeline.
Price Performance
American Vanguard’s shares have gained 6.2% over the past three months, outperforming the 3.3% gain of the industry it belongs to.
Zacks Rank & Stocks to Consider
American Vanguard currently has a Zacks Rank #4 (Sell).
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have rallied 34.7% over a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up 14.4% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have jumped 28.9% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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American Vanguard (AVD) Q1 Earnings Beat, Sales Miss Estimates
American Vanguard Corporation (AVD - Free Report) profits for first-quarter 2018 were around $4.7 million or 16 cents per share, up around 36.4% from roughly $3.5 million or 12 cents a year ago. Earnings per share beat the Zacks Consensus Estimate of 14 cents.
Revenues surged 47.2% year over year to $104.1 million in the reported quarter. The figure however, missed the Zacks Consensus Estimate of $108 million. Increase in sales was mainly attributable to acquisitions and gain in AMVAC’s traditional base business.
The company’s net sales from the United States also went up 33.6% year over year to $69.8 million while international revenues rose 86.1% to $34.3 million.
Per the company, overall financial results in the quarter considerably improved on the back of product and company acquisitions it made last year along with its diversified presence in several markets.
American Vanguard Corporation Price, Consensus and EPS Surprise
American Vanguard Corporation Price, Consensus and EPS Surprise | American Vanguard Corporation Quote
Segment Highlights
Revenues from American Vanguard’s insecticides business climbed 8.8% year over year to $41.3 million in the reported quarter.
Sales from the herbicides/soil fumigants/fungicides business jumped around 60.8% to $32.2 million in the quarter.
Revenues from the other business, including plant growth regulators and distribution, surged more than five-fold to $17.8 million.
Sales from the non-crop business surged 37.3% to $12.8 million in the quarter.
Financials
American Vanguard ended the quarter with cash and cash equivalents of $13 million, up around 20.6% year over year. Long-term debt was $90.3 million, up 16.6% year over year.
Outlook
American Vanguard expects growth to continue through the year for its herbicide products, Central American region and non-crop business. The company also expects strong demand for its cotton products, strong sales of Dibrom mosquito adulticide, vegetables and fruits and stable demand for corn products. American Vanguard is scheduled to launch several new products from its development pipeline.
Price Performance
American Vanguard’s shares have gained 6.2% over the past three months, outperforming the 3.3% gain of the industry it belongs to.
Zacks Rank & Stocks to Consider
American Vanguard currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks worth considering in the basic materials space are Steel Dynamics, Inc. (STLD - Free Report) , Huntsman Corporation (HUN - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have rallied 34.7% over a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up 14.4% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have jumped 28.9% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>