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American Vanguard (AVD) Q4 Earnings Lag Estimates, Sales Beat
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American Vanguard Corporation (AVD - Free Report) posted earnings of 16 cents per share for the fourth quarter of 2021, down from 26 cents it earned a year ago. Earnings per share for the quarter missed the Zacks Consensus Estimate of 24 cents.
Revenues were $158.8 million for the reported quarter, up roughly 13% year over year. It surpassed the Zacks Consensus Estimate of $153.3 million. The company saw higher sales across its domestic and international businesses in the reported quarter. It benefited from strong market demand.
American Vanguard Corporation Price, Consensus and EPS Surprise
Revenues from American Vanguard’s U.S. crop business for the reported quarter went up roughly 14% year over year to around $78 million.
Sales from the U.S. non-crop business rose roughly 17% year over year to around $19.6 million.
Revenues from international businesses increased roughly 10% year over year to $61.2 million.
FY21 Results
Earnings or full-year 2021 were 61 cents per share, up from 51 cents a year ago. Revenues were $556.9 million for the full year, up around 21% year over year.
The company’s U.S. Crop business gained, in 2021, from the economic reopening and increased crop commodity prices, which led to strong demand for its products in corn, soybeans, cotton, potatoes and several fruits and vegetables. The U.S. non-crop business also witnessed strong demand in mosquito control, commercial pest applications, horticulture/ornamental products and Envance Technologies’ licensing for consumer products.
Financials
American Vanguard ended 2021 with cash and cash equivalents of roughly $16.3 million, up around 2% year over year. Long-term debt was roughly $52.2 million, down around 51% year over year.
Outlook
Moving ahead, American Vanguard said that it is well placed in both domestic and international markets. The company anticipates revenue growth of 8-11% in 2022 and sees gross profit margins to remain strong at 38-40% of net sales. Net income is forecast to increase by 60-70% while operating expenses are projected to be between 31% and 33% of net sales.
Price Performance
American Vanguard’s shares are down 23.9% over a year, compared with the 23.7% decline of the industry it belongs to.
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 The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Mosaic, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 73% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 20.8% for the current year. ASIX's consensus estimate for current-year earnings has been revised 15.7% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 51% in a year.
Commercial Metals, carrying a Zacks Rank #2, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 33% in a year.
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American Vanguard (AVD) Q4 Earnings Lag Estimates, Sales Beat
American Vanguard Corporation (AVD - Free Report) posted earnings of 16 cents per share for the fourth quarter of 2021, down from 26 cents it earned a year ago. Earnings per share for the quarter missed the Zacks Consensus Estimate of 24 cents.
Revenues were $158.8 million for the reported quarter, up roughly 13% year over year. It surpassed the Zacks Consensus Estimate of $153.3 million. The company saw higher sales across its domestic and international businesses in the reported quarter. It benefited from strong market demand.
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 went up roughly 14% year over year to around $78 million.
Sales from the U.S. non-crop business rose roughly 17% year over year to around $19.6 million.
Revenues from international businesses increased roughly 10% year over year to $61.2 million.
FY21 Results
Earnings or full-year 2021 were 61 cents per share, up from 51 cents a year ago. Revenues were $556.9 million for the full year, up around 21% year over year.
The company’s U.S. Crop business gained, in 2021, from the economic reopening and increased crop commodity prices, which led to strong demand for its products in corn, soybeans, cotton, potatoes and several fruits and vegetables. The U.S. non-crop business also witnessed strong demand in mosquito control, commercial pest applications, horticulture/ornamental products and Envance Technologies’ licensing for consumer products.
Financials
American Vanguard ended 2021 with cash and cash equivalents of roughly $16.3 million, up around 2% year over year. Long-term debt was roughly $52.2 million, down around 51% year over year.
Outlook
Moving ahead, American Vanguard said that it is well placed in both domestic and international markets. The company anticipates revenue growth of 8-11% in 2022 and sees gross profit margins to remain strong at 38-40% of net sales. Net income is forecast to increase by 60-70% while operating expenses are projected to be between 31% and 33% of net sales.
Price Performance
American Vanguard’s shares are down 23.9% over a year, compared with the 23.7% decline of the industry it belongs to.
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 The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Mosaic, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 22.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missed once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 73% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 20.8% for the current year. ASIX's consensus estimate for current-year earnings has been revised 15.7% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 51% in a year.
Commercial Metals, carrying a Zacks Rank #2, has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 33% in a year.