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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.