American Woodmark Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

American Woodmark (NAS: AMWD) reported earnings on June 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q4), American Woodmark beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP loss per share expanded.


Gross margins shrank, operating margins improved, net margins dropped.

Revenue details
American Woodmark tallied revenue of $136.2 million. The five analysts polled by S&P Capital IQ predicted a top line of $133.0 million on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $124.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.11. The five earnings estimates compiled by S&P Capital IQ predicted -$0.07 per share. GAAP EPS were -$0.42 for Q4 versus -$0.24 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.7%, 50 basis points worse than the prior-year quarter. Operating margin was -2.4%, 90 basis points better than the prior-year quarter. Net margin was -4.4%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $137.3 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $541.3 million. The average EPS estimate is $0.25.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 39 members out of 70 rating the stock outperform, and 31 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give American Woodmark a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Woodmark is outperform, with an average price target of $19.67.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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