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American Vanguard (AVD) Q2 Earnings and Sales Surpass Estimates

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American Vanguard Corporation (AVD - Free Report) posted profit of $5.1 million or 17 cents per share for the second quarter of 2021, up from $3.9 million or 13 cents it earned a year ago. Earnings per share for the quarter topped the Zacks Consensus Estimate of 10 cents.

Revenues were $134.6 million for the reported quarter, up roughly 29% year over year. It also surpassed the Zacks Consensus Estimate of $117.5 million. The company saw higher sales across its domestic and international businesses in the reported quarter. It benefited from strong market demand in the quarter.

 

American Vanguard Corporation Price, Consensus and EPS Surprise

 

American Vanguard Corporation Price, Consensus and EPS Surprise

American Vanguard Corporation price-consensus-eps-surprise-chart | American Vanguard Corporation Quote

 

Sales by Regions

Revenues from American Vanguard’s U.S. crop business for the reported quarter climbed roughly 40% year over year to roughly $62.6 million.

Sales from the U.S. non-crop business jumped 55% year over year to around $21.5 million.

Revenues from international businesses rose 10% year over year at $50.5 million. The company benefited from the newly acquired businesses — AgNova in Australia and the Agrinos biologicals business.

Financials

American Vanguard ended the quarter with cash and cash equivalents of roughly $19.6 million, up around 128% year over year. Long-term debt was roughly $149.4 million, down around 6% year over year.

Outlook

Moving ahead, American Vanguard said that it is well placed in domestic and international markets. The company reaffirmed its earlier outlook for 2021. It sees low double-digit revenue growth and comparatively stronger growth in both net income and EBITDA factoring in favorable market conditions. American Vanguard also expects these factors along with well-managed operating expenses to further strengthen its balance sheet.

Price Performance

American Vanguard’s shares are up 2.1% over a year, compared with the 24.9% rise of the industry it belongs to.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

American Vanguard currently carries a Zacks Rank #3 (Hold)

Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , ArcelorMittal (MT - Free Report) and LyondellBasell Industries N.V. (LYB - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has a projected earnings growth rate of 455.7% for the current year. The company’s shares have surged around 175% in a year.

ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 199% in the past year.

LyondellBasell has an expected earnings growth rate of around 254.6% for the current year. The company’s shares have gained roughly 52% in the past year.