What's in Store for American Woodmark (AMWD) in Q1 Earnings?
American Woodmark Corporation AMWD is slated to release first-quarter fiscal 2024 results on Aug 29, before market open.
In the last reported quarter, the company’s top line marginally surpassed the Zacks Consensus Estimate, while the bottom line handily topped the same by 63.7%. On a year-over-year basis, revenues decreased by 4.1%, but the adjusted earnings of $2.21 per share expanded by 60.1% from the year-ago quarter’s figure of $1.38.
Its bottom line topped the consensus mark in three of the trailing four 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 $2.10 per share to $2.20 over the past 30 days. The estimated figure indicates a 28.7% rise from the year-ago quarter’s earnings of $1.71 per share.
American Woodmark Corporation Price and EPS Surprise
American Woodmark Corporation price-eps-surprise | American Woodmark Corporation Quote
The consensus mark for revenues is $489.4 million, suggesting a 9.9% year-over-year decline.
Factors to Note
One of the largest manufacturers of kitchen and bath cabinets is likely to have generated strong earnings in the fiscal first quarter amid revenue-related challenges. Strong pricing actions to better match inflationary impacts and reduced spending are likely to have aided the bottom line.
AMWD’s various platform investment initiatives, supply chain improvement moves, digital transformation and operating leverage strategies are likely to have supported earnings growth.
However, 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.
Demographic shifts and a multi-year housing deficit are likely to have aided the company in the fiscal first 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 +8.43%. 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 #2. 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 second-quarter 2023 results, wherein earnings and sales missed the Zacks Consensus Estimate.
Its top and bottom lines declined on a year-over-year basis. The downtrend was caused by weak demand in Bedding Products and Furniture, Flooring & Textile Products segments and the volatile macroeconomic environment.
Mohawk Industries, Inc. MHK reported better-than-expected results in its second quarter of 2023, wherein its top and bottom lines surpassed the Zacks Consensus Estimate.
Although earnings and net sales declined year over year, the company exceeded its estimates for adjusted earnings of $2.56-$2.66 per share. This was driven by sequential margin improvement across the enterprise on the back of seasonal improvements, increased production, productivity initiatives and lower input costs.
Adtalem Global Education Inc. ATGE reported better-than-expected results for fourth-quarter fiscal 2023. Earnings and revenues surpassed their respective Zacks Consensus Estimate. On a year-over-year basis, earnings declined despite revenue growth.
Its metrics outpaced the previously provided guidance for fiscal 2023, given the improvement in enrollment, continued benefit from strategic initiatives and cost synergies.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Leggett & Platt, Incorporated (LEG) : Free Stock Analysis Report
American Woodmark Corporation (AMWD) : Free Stock Analysis Report
Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report
Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
