Yahoo Finance American Vanguard (AVD) Earnings and Sales Beat Estimates in Q4
American Vanguard Corporation’s AVD earnings for the fourth quarter of 2022 were of 14 cents per share compared with 16 cents it earned a year ago. It topped the Zacks Consensus Estimate of 7 cents.
Revenues were $160 million for the reported quarter, flat year over year. It surpassed the Zacks Consensus Estimate of $159.1 million. The company was unable to sell its leading soil insecticides Aztec in the reported quarter due to supply-chain disruptions.
American Vanguard Corporation Price, Consensus and EPS Surprise
American Vanguard Corporation price-consensus-eps-surprise-chart | American Vanguard Corporation Quote
Sales by Regions
Revenues from American Vanguard’s U.S. crop business for the reported quarter went down roughly 14% year over year to around $68.1 million.
Sales from the U.S. non-crop business rose roughly 28% year over year to around $23.1 million.
Revenues from international businesses increased roughly 11% year over year to $68.8 million.
FY22 Results
Earnings or full-year 2022 were 92 cents per share, up from 61 cents a year ago. Revenues were $609.6 million for the full year, up around 9% year over year.
The company’s U.S. Crop business gained in 2022, from high commodity prices and a strong farm economy, which led to higher sales for its products in corn, soybeans, cotton, potatoes, and many fruits and vegetables. The U.S. non-crop business saw flat overall sales in 2022. Sales in its international business increased on higher sales of soil fumigants in Mexico and Australia.
Financials
American Vanguard ended 2022 with cash and cash equivalents of roughly $20.3 million, up around 25% year over year. Long-term debt was roughly $51.4 million, down around 1% year over year.
Outlook
Moving ahead, American Vanguard said that it is well placed in both domestic and international markets for 2023. The company anticipates net sales growth of 8-12% year over year in 2023. Net sales are projected in the range of $655-$685 million for the year.
AVD also sees gross margins to be in the band of 38-41%. Net income is forecast to increase by 22-34% while operating expenses are projected to be between 31% and 33% of net sales in 2023.
Price Performance
American Vanguard’s shares are up 11.1% over a year, compared with the 5.3% decline of the industry it belongs to.
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Zacks Rank & Key Picks
American Vanguard currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD, Olympic Steel, Inc. ZEUS and Nucor Corporation NUE.
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 20.1% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has gained around 26% in a year.
Olympic Steel currently sports a Zacks Rank #1. The Zacks Consensus Estimate for ZEUS's current-year earnings has been revised 60.6% upward in the past 60 days.
Olympic Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2%, on average. ZEUS has rallied around 37% in a year.
Nucor currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 10.7% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 7% in the past year.
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