Overview
American Woodmark fiscal Q2 net sales decline 12.8%, missing analyst expectations
Adjusted EPS for fiscal Q2 misses analyst estimates
Company cites lower demand and higher costs for decreased earnings
Outlook
American Woodmark will not provide guidance due to pending merger with MasterBrand
Company estimates tariffs impact 4-4.5% of annualized net sales
Company focuses on structural cost reductions to mitigate tariff impacts
Result Drivers
LOWER DEMAND - Co attributes net sales decline to reduced demand in new construction and remodel markets
HIGHER COSTS - Increased tariff and input costs negatively impacted net income
COST CONTROL - Adjusted EBITDA margins maintained through cost control measures and strategic actions
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $394.64 mln | $410.62 mln (3 Analysts) |
Q2 Adjusted EPS | Miss | $0.76 | $1.20 (3 Analysts) |
Q2 EPS | $0.42 | ||
Q2 Net Income | $6.10 mln | ||
Q2 Adjusted EBITDA | $29.82 mln | ||
Q2 Gross Profit | $59.90 mln | ||
Q2 Operating Income | $12.35 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for American Woodmark Corp is $71.00, about 27% above its November 24 closing price of $51.85
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw50qydda
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)