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American Vanguard (AVD) Q4 Earnings Meet, Sales Miss Estimates
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American Vanguard Corporation (AVD - Free Report) logged earnings of 25 cents per share in the fourth quarter of 2023 against earnings of 13 cents a year ago. It was in line with the Zacks Consensus Estimate of 25 cents.
Revenues were $172.2 million for the reported quarter, up around 8% year over year. Revenues missed the Zacks Consensus Estimate of $172.7 million. In the fourth quarter, the company experienced a rebound following challenges such as global destocking within the distribution channel, oversupply of Chinese generic products in various regions and supply chain disruptions leading to the unavailability of its most profitable products.
American Vanguard Corporation Price, Consensus and EPS Surprise
Revenues from American Vanguard’s U.S. crop business in the reported quarter went up nearly 11% year over year to around $83.4 million.
Sales from the U.S. non-crop business rose around 10% year over year to around $25.2 million.
Revenues from international businesses fell 7% year over year to $63.5 million.
FY23 Results
In 2023, net sales amounted to $579 million, down from $610 million a year ago. Net income in 2023 was $7.5 million, significantly lower than the $27.4 million recorded in 2022. Earnings per share were 26 cents in 2023, down from 92 cents in 2022.
Financials
American Vanguard ended the quarter with cash and cash equivalents of roughly $11.4 million, down around 44% year over year. Long-term debt was approximately $138.9 million, up around 170% year over year.
Outlook
Looking ahead, the company is confident in its positioning within domestic and international markets, aiming for a revenue growth of 8-12% in 2024. This target is anticipated to result in a full-year adjusted EBITDA in the range of $70-$80 million. The company expects to maintain robust gross profit margins, exercise tight control over operating expenses and ensure efficient factory performance.
Through its business transformation initiative, the company is targeting adjusted EBITDA growth to 15% of net sales. This equates to an additional $15 million or more in adjusted EBITDA on a full-year basis. The transformation’s full benefits are anticipated to materialize by 2026, driven by a combination of operational, commercial, digital and general and administrative sub-initiatives.
Price Performance
American Vanguard’s shares have lost 47.9% in a year against a 34.4% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
American Vanguard currently carries a Zacks Rank #2 (Buy).
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 the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 55.1% 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 topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 41.2% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 78.7% in the past year.
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American Vanguard (AVD) Q4 Earnings Meet, Sales Miss Estimates
American Vanguard Corporation (AVD - Free Report) logged earnings of 25 cents per share in the fourth quarter of 2023 against earnings of 13 cents a year ago. It was in line with the Zacks Consensus Estimate of 25 cents.
Revenues were $172.2 million for the reported quarter, up around 8% year over year. Revenues missed the Zacks Consensus Estimate of $172.7 million. In the fourth quarter, the company experienced a rebound following challenges such as global destocking within the distribution channel, oversupply of Chinese generic products in various regions and supply chain disruptions leading to the unavailability of its most profitable products.
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 in the reported quarter went up nearly 11% year over year to around $83.4 million.
Sales from the U.S. non-crop business rose around 10% year over year to around $25.2 million.
Revenues from international businesses fell 7% year over year to $63.5 million.
FY23 Results
In 2023, net sales amounted to $579 million, down from $610 million a year ago. Net income in 2023 was $7.5 million, significantly lower than the $27.4 million recorded in 2022. Earnings per share were 26 cents in 2023, down from 92 cents in 2022.
Financials
American Vanguard ended the quarter with cash and cash equivalents of roughly $11.4 million, down around 44% year over year. Long-term debt was approximately $138.9 million, up around 170% year over year.
Outlook
Looking ahead, the company is confident in its positioning within domestic and international markets, aiming for a revenue growth of 8-12% in 2024. This target is anticipated to result in a full-year adjusted EBITDA in the range of $70-$80 million. The company expects to maintain robust gross profit margins, exercise tight control over operating expenses and ensure efficient factory performance.
Through its business transformation initiative, the company is targeting adjusted EBITDA growth to 15% of net sales. This equates to an additional $15 million or more in adjusted EBITDA on a full-year basis. The transformation’s full benefits are anticipated to materialize by 2026, driven by a combination of operational, commercial, digital and general and administrative sub-initiatives.
Price Performance
American Vanguard’s shares have lost 47.9% in a year against a 34.4% rise of the industry.
Image Source: Zacks Investment Research
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) and Ecolab Inc. (ECL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc. (HWKN - Free Report) , 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 the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 55.1% 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 topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 41.2% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 78.7% in the past year.