American Woodmark (AMWD) to Post Q2 Earnings: What to Expect?
American Woodmark Corporation AMWD is slated to release second-quarter fiscal 2024 results on Nov 30, after market close.
In the last reported quarter, the company’s earnings and net sales surpassed the Zacks Consensus Estimate by 26.4% and 1.8%, respectively. On a year-over-year basis, revenues decreased by 8.2%, but its adjusted earnings per share expanded by 62.6% from the year-ago quarter.
Its bottom line topped the consensus mark in five of the trailing six quarters and missed on one occasion.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased from $1.77 per share to $1.84 over the past 30 days. The estimated figure indicates a 17.9% decline from the year-ago quarter’s earnings of $2.24 per share.
American Woodmark Corporation Price and EPS Surprise
American Woodmark Corporation price-eps-surprise | American Woodmark Corporation Quote
The consensus mark for net sales is $455.35 million, suggesting a decline of 18.9% year over year.
Factors to Note
One of the largest manufacturers of kitchen and bath cabinets is likely to have generated strong earnings in the fiscal second quarter. Strong pricing actions to better match inflationary impacts and reduced spending are likely to have aided the bottom line. Operational improvements in the manufacturing facilities, a stabilizing supply chain and reduced overhead spending bode well.
AMWD’s various platform investment initiatives, digital transformation and operating leverage strategies are likely to have supported growth.
However, net sales are likely to be challenged owing to the soft demand environment. The housing downturn in the past few quarters and a high-interest rate environment have impacted the demand pattern for the furniture industry. Increased labor costs and domestic logistics expenses are added concerns for the company.
Nonetheless, demographic shifts and a multi-year housing deficit are likely to have aided the company in the fiscal second quarter. Active growth programs, new product innovation, e-commerce and dealer/distributor penetration are added positives.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for American Woodmark this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Earnings ESP is +14.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Woodmark currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Some Recent Consumer Discretionary Releases
Leggett & Platt, Inc. LEG reported tepid third-quarter 2023 results, with earnings and sales missing the Zacks Consensus Estimate.
The top and bottom lines declined on a year-over-year basis. The downtrend was caused by persistent weak demand in the Bedding Products and Furniture and Flooring & Textile Products segments, partially offset by strong demand in the Specialized Products segment.
Strategic Education, Inc. or SEI STRA reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped the respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment growth in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. ATGE reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. The company also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, ATGE is well-equipped to address critical healthcare provider shortages.
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