WINCHESTER, Va. (AP) -- American Woodmark's first-quarter net income jumped more than tenfold as the cabinet maker continues to benefit from strong new home construction.
Earnings and revenue beat Wall Street expectations.
Like other companies with exposure to the housing market, American Woodmark is riding a wave of increased consumer confidence in the sector and upbeat home data. On Friday the Commerce Department reported that U.S. developers broke ground on homes at a faster pace in July. And on Thursday the National Association of Home Builders/Wells Fargo builder sentiment index reported that confidence among U.S. homebuilders is at its highest level in nearly eight years, fueled by optimism that demand for new homes will drive sales growth into next year.
The Winchester, Va., company earned $6.7 million, or 43 cents per share, for the three months ended July 31. That's sharply higher than the $561,000, or 4 cents per share, a year ago.
Revenue rose 20 percent to $178.1 million from $148.3 million.
Analysts surveyed by FactSet predicted earnings of 32 cents per share on revenue of $173 million.
Also on Tuesday, Home Depot Inc. reported that its second-quarter profit rose 18 percent. Its results topped analysts' estimates and the home improvement retailer raised its full-year earnings and revenue outlooks again.
Shares of American Woodmark Corp. closed Monday at $31.73.
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