American Vanguard Corp. (NYSE:AVD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
American Vanguard Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 90.32% to $0.59 in the quarter versus EPS of $0.31 in the year-earlier quarter.
Revenue: Rose 39.24% to $121.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: American Vanguard Corp. reported adjusted EPS income of $0.59 per share. By that measure, the company beat the mean analyst estimate of $0.46. It beat the average revenue estimate of $115.37 million.
Quoting Management: Eric Wintemute, Chairman and CEO of American Vanguard, stated: “This record 2013 first quarter result demonstrates the continuing performance that we have been delivering over the last three years. Our net sales increase of 39% was driven largely by the strong demand for both our granular soil insecticides and our Impact® herbicide in the U.S. corn market. Gross profit margins rose to 44% on a profitable product mix, improved pricing and continued progress on factory utilization. Operating expenses as a percentage of net sales declined to 23%, despite higher selling and administrative expenses associated with our dynamic growth. Stronger sales, improved gross margins and operating expense management enabled us to improve our net income by 94%…to a very strong 14% of net sales.”
Key Stats (on next page)…
Revenue increased 17.57% from $103.34 million in the previous quarter. EPS increased 51.28% from $0.39 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.37 to a profit $0.40. For the current year, the average estimate has moved up from a profit of $1.60 to a profit of $1.68 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)