American Woodmark Corporation (AMWD) stock is soaring 5.54% in pre-market trading after the company reported better-than-expected fourth-quarter adjusted earnings per share (EPS), despite a significant revenue decline. The kitchen and bath cabinet manufacturer posted an adjusted EPS of $1.61, surpassing the analyst consensus estimate of $1.42.

While the company's Q4 revenue fell 11.7% year-over-year to $400.4 million, missing the expected $426.24 million, investors appeared to focus on the earnings beat and the company's ability to maintain profitability in a challenging environment. American Woodmark reported a Q4 net income of $25.57 million, with a GAAP EPS of $1.71, demonstrating resilience in the face of market headwinds.

Looking ahead, American Woodmark provided a cautious outlook for fiscal 2026, projecting adjusted EBITDA between $175 million and $200 million. The company also expects net sales to range from low-single-digit declines to low-single-digit increases, reflecting ongoing uncertainty in the market. Despite these challenges, the strong Q4 performance seems to have bolstered investor confidence, driving the stock's significant pre-market rally.