Cabinet manufacturing company American Woodmark (NASDAQ: AMWD) will be reporting results tomorrow before the bell. Here’s what you need to know.
American Woodmark missed analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $397.6 million, down 5.8% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is American Woodmark a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting American Woodmark’s revenue to decline 5.4% year on year to $428.8 million, in line with the 5.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Woodmark has missed Wall Street’s revenue estimates twice over the last two years.
Looking at American Woodmark’s peers in the home construction materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 2%, and JELD-WEN reported a revenue decline of 19.1%, topping estimates by 0.8%. Simpson’s stock price was unchanged after the resultswhile JELD-WEN was down 25.3%.
Read our full analysis of Simpson’s results here and JELD-WEN’s results here.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 10.8% on average over the last month. American Woodmark is down 2.2% during the same time and is heading into earnings with an average analyst price target of $76.33 (compared to the current share price of $57.77).
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