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American Vanguard (AVD) Q2 Earnings Meet, Sales Lag Estimates

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American Vanguard Corporation AVD posted profit of $3.9 million or 13 cents per share for the second quarter of 2020, up from $3.1 million or 11 cents it earned a year ago. Earnings per share for the quarter were in line with the Zacks Consensus Estimate.

The company benefited from strong manufacturing performance and actions to reduce operating expenses.

Revenues were $104.6 million for the reported quarter, down roughly 8% year over year. It missed the Zacks Consensus Estimate of $116.4 million.

American Vanguard saw lower sales in its domestic and international businesses in the reported quarter. Sales in the quarter were hurt by the impacts of the coronavirus pandemic and unfavorable currency exchange translation.

American Vanguard Corporation Price, Consensus and EPS Surprise

 

American Vanguard Corporation Price, Consensus and EPS Surprise
American Vanguard Corporation Price, Consensus and EPS Surprise

American Vanguard Corporation price-consensus-eps-surprise-chart | American Vanguard Corporation Quote

 

Sales by Regions and Categories

Revenues from American Vanguard’s domestic crop business for the reported quarter fell roughly 6% year over year to roughly $44.7 million.

Sales from the domestic non-crop business went down 18% year over year to around $13.9 million.

Revenues from international businesses fell around 5% year over year to around $46 million.

Financials

American Vanguard ended the quarter with cash and cash equivalents of roughly $8.6 million, up around 37% year over year. Long-term debt was roughly $159.4 million, down around 3% year over year.

Outlook

American Vanguard said that it is well placed to address its markets over the remainder of 2020. The company expects to benefit from favorable conditions for its mosquito control business, improved supply of Krovar and Hyvar herbicides, strength of its soil fumigants and growth of its corn and soybean franchises. It also remains committed to pursue its key strategic initiatives for future growth.

Price Performance

American Vanguard’s shares are up 11.7% over a year, compared with the 7% decline of the industry it belongs to.

 

 

Zacks Rank & Key Picks

American Vanguard currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth considering in the basic materials space include Barrick Gold Corporation GOLD, Equinox Gold Corp. EQX and Eldorado Gold Corporation EGO.

Barrick Gold has a projected earnings growth rate of 74.5% for the current year. The company’s shares have gained around 61% in a year. It currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Equinox Gold has a projected earnings growth rate of 255.2% for the current year. The company’s shares have rallied roughly 107% in a year. It currently carries a Zacks Rank #2 (Buy).

Eldorado Gold has an expected earnings growth rate of 2,225% for the current year. The company’s shares have shot up around 46% in the past year. It presently carries a Zacks Rank #2.

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