American Woodmark Earnings Leap
Winchester, Va.-based American Woodmark shares leapt more than 4% in early Tuesday trading, responding to a fiscal Q1 2014 earnings report that was largely positive.
Like other companies with exposure to the housing market, American Woodmark is riding a wave of increased consumer confidence in the sector and upbeat home data.
Sales in the first fiscal quarter climbed 20% to $178.1 million. Moreover, Woodmark expanded its gross profit margins by 400 basis points in the first quarter, to 18.9%. Selling, general and administrative costs declined by 80 basis points. As a result, Woodmark earned $0.43 per diluted share in Q1, more than a 10-fold gain over last year's Q1 earnings of $0.04 per diluted share.
The sole black mark on the quarter was found in the company's cash flow statement, which showed American Woodmark continuing to burn cash, albeit at a much slower pace than last year. Free cash flow for the quarter came to negative $690,000. Over the past four quarters, however, American Woodmark has generated $21.7 million in positive free cash flow, a number exceeding even its $15.1 million in reported GAAP net income.
-- Material from The Associated Press was used in this report.
The article American Woodmark Earnings Leap originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.