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American Vanguard (AVD) Q1 Earnings in Line, Sales Miss
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American Vanguard Corporation (AVD - Free Report) reported first-quarter 2017 results, wherein earnings were in line with estimates, while revenues missed expectations. The company’s net income from continuing operations was up 23.7% year over year to $3.45 million or 12 cents per share. Earnings per share were in line with the Zacks Consensus Estimate.
Cost of sales for the reported quarter fell roughly 3.3% year over year to around $40.6 million.
Revenues rose 1.7% year over year to $70.7 million in the reported quarter, but missed the Zacks Consensus Estimate of $75 million. The company’s sales from the U.S. went up 4.8% to $52.2 million, while international revenues fell 6.1% to $18.4 million.
American Vanguard Corporation Price, Consensus and EPS Surprise
Revenues from American Vanguard’s insecticides business rose 14.5% to $37.9 million in first-quarter 2017, from the year-ago figure of $33.1 million.
Sales from the herbicides/soil fumigants/fungicides business declined around 18.9% year over year to $20 million in the quarter. The company saw lower demand for corn herbicides due to delayed planting and competitive market conditions.
Revenues from the other business went up around 3.5% year over year to $3.4 million.
Financials
American Vanguard’s cash and cash equivalents amounted to $10.8 million as of Mar 31, 2017, down around 36.3% year over year. Long-term debt rose to $30 million as of Mar 31, 2017 from $65.8 million as of Mar 31, 2016.
Outlook
The company expects consistent growth of cotton and peanut products, and stable performance of soil fumigants. The company sees a strong post-emergent herbicide market due to delayed planting on many corn acres which would benefit sales of Impact corn herbicide during the second quarter. The company foresees multiple acquisition opportunities in 2017. The acquisition of three products from the Adama group, which is subject to closing of the ChemChina/Syngenta merger, is scheduled to take place in the second quarter.
Price Performance
American Vanguard’s shares rallied around 6.1% over the past three months outperforming the Zacks categorized Chemical-Specialty industry’s 4.8% gain.
Zacks Rank & Key Picks
American Vanguard currently carries a Zacks Rank #3 (Hold).
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
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American Vanguard (AVD) Q1 Earnings in Line, Sales Miss
American Vanguard Corporation (AVD - Free Report) reported first-quarter 2017 results, wherein earnings were in line with estimates, while revenues missed expectations. The company’s net income from continuing operations was up 23.7% year over year to $3.45 million or 12 cents per share. Earnings per share were in line with the Zacks Consensus Estimate.
Cost of sales for the reported quarter fell roughly 3.3% year over year to around $40.6 million.
Revenues rose 1.7% year over year to $70.7 million in the reported quarter, but missed the Zacks Consensus Estimate of $75 million. The company’s sales from the U.S. went up 4.8% to $52.2 million, while international revenues fell 6.1% to $18.4 million.
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 rose 14.5% to $37.9 million in first-quarter 2017, from the year-ago figure of $33.1 million.
Sales from the herbicides/soil fumigants/fungicides business declined around 18.9% year over year to $20 million in the quarter. The company saw lower demand for corn herbicides due to delayed planting and competitive market conditions.
Revenues from the other business went up around 3.5% year over year to $3.4 million.
Financials
American Vanguard’s cash and cash equivalents amounted to $10.8 million as of Mar 31, 2017, down around 36.3% year over year. Long-term debt rose to $30 million as of Mar 31, 2017 from $65.8 million as of Mar 31, 2016.
Outlook
The company expects consistent growth of cotton and peanut products, and stable performance of soil fumigants. The company sees a strong post-emergent herbicide market due to delayed planting on many corn acres which would benefit sales of Impact corn herbicide during the second quarter. The company foresees multiple acquisition opportunities in 2017. The acquisition of three products from the Adama group, which is subject to closing of the ChemChina/Syngenta merger, is scheduled to take place in the second quarter.
Price Performance
American Vanguard’s shares rallied around 6.1% over the past three months outperforming the Zacks categorized Chemical-Specialty industry’s 4.8% gain.
Zacks Rank & Key Picks
American Vanguard currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials space include BASF SE (BASFY - Free Report) , The Chemours Company (CC - Free Report) and Kronos Worldwide Inc (KRO - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF has expected long-term growth of 8.6%.
Chemours has expected long-term growth of 15.5%.
Kronos has expected long-term growth of 5%.
Zacks’ Best Private Investment Ideas
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