Why American Woodmark Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of American Woodmark were looking sturdier today, gaining as much as 13% after topping estimates in its quarterly report.
So what: The kitchen-cabinet and remodeling specialist delivered adjusted earnings per share of $0.14, well ahead of expectations of $0.03. Revenues, meanwhile, jumped 26% to $151.4 million, easily beating the consensus estimate at $140.3 million. Results were strong across the board as all segments improved and new construction sales grew by more than 50%.
Now what: American Woodmark appears to be riding the same housing recovery wave that has caused homebuilder stocks and others in the industry to soar. Its $0.14 per-share profit comes after losing $0.20 a share in the quarter a year ago. Considering that we're in the slow season for construction companies, earnings per share should soar come summer. I'd expect American Woodmark shares, which have already doubled in just six months, to continue to move north.
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The article Why American Woodmark Shares Jumped originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.