Cabinet manufacturing company American Woodmark (NASDAQ:AMWD) will be reporting earnings tomorrow before market hours. Here’s what to expect.
American Woodmark beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $452.5 million, down 4.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income and EPS 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 2.6% year on year to $411 million, improving from the 12.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.32 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 Q4 results, giving us a hint as to what we can expect. Owens Corning delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.7%, and Trex reported a revenue decline of 14.4%, topping estimates by 4.4%. Owens Corning traded down 4% following the results while Trex was up 1.1%.
Read our full analysis of Owens Corning’s results here and Trex’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the home construction materials stocks have shown solid performance, the group has generally underperformed, with share prices down 5.7% on average over the last month. American Woodmark is down 10.2% during the same time and is heading into earnings with an average analyst price target of $105 (compared to the current share price of $71.55).
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