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American Vanguard (AVD) Expands in Latin America With Punto Verde
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American Vanguard Corporation (AVD - Free Report) has announced the acquisition of Punto Verde, a prominent distributor in Guayaquil, Ecuador. This strategic move is aimed to enhance product range and market presence within the Latin American region. AMVAC LATAM, a subsidiary of American Vanguard, is a significant player in the Latin American agricultural sector and has established itself as a leader in commercializing crop protection products.
The company is thrilled to have completed the acquisition of Punto Verde in Ecuador, a country that ranks as the seventh-largest agricultural market in LATAM. While this transaction may not be of considerable scale, as it is expected to contribute around five percent to AMVAC’s overall LATAM sales, it holds significant strategic importance for the market access strategy in South America through a well-managed distribution enterprise.
Punto Verde aligns remarkably well with AMVAC's, emphasizing ethics, quality, service and professionalism. The company is confident that Punto Verde's extensive experience and profound market knowledge will serve as an ideal platform for expanding its footprint in Ecuador. Furthermore, this acquisition substantially reinforces its rapidly growing Green Solutions business. AMVAC anticipates leveraging Punto Verde's capabilities to develop its portfolio of AMGREEN bio-rational solutions. This deal underscores its unwavering commitment to creating a better world for future generations.
American Vanguard's shares have plunged 50.3% in the past year against the industry’s rise of 18.8% in the same period.
Image Source: Zacks Investment Research
In the second quarter of 2023, American Vanguard reported a loss of 4 cents per share, a significant decrease from earnings of 23 cents in the same period the previous year and falling short of the Zacks Consensus Estimate of 32 cents. Revenues for the quarter were $132.8 million, representing a 10% decline year-over-year and missing the Zacks Consensus Estimate of $166 million.
For the full year, AVD expects net sales in the range of $615-$625 million, with a gross margin of approximately 32%. Net income is projected to be in the range of $20-$24 million, and operating expenses are expected to be around 25% of net sales for the year 2023.
In the past 60 days, the Zacks Consensus Estimate for Westrock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 16.1% in the past year.
The consensus estimate for Air Products’ current fiscal year earnings is pegged at $11.47, indicating year-over-year growth of 10.2%. APD beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 1.8%. The company’s shares have surged 22.3% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 57.8% in a year.
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American Vanguard (AVD) Expands in Latin America With Punto Verde
American Vanguard Corporation (AVD - Free Report) has announced the acquisition of Punto Verde, a prominent distributor in Guayaquil, Ecuador. This strategic move is aimed to enhance product range and market presence within the Latin American region. AMVAC LATAM, a subsidiary of American Vanguard, is a significant player in the Latin American agricultural sector and has established itself as a leader in commercializing crop protection products.
The company is thrilled to have completed the acquisition of Punto Verde in Ecuador, a country that ranks as the seventh-largest agricultural market in LATAM. While this transaction may not be of considerable scale, as it is expected to contribute around five percent to AMVAC’s overall LATAM sales, it holds significant strategic importance for the market access strategy in South America through a well-managed distribution enterprise.
Punto Verde aligns remarkably well with AMVAC's, emphasizing ethics, quality, service and professionalism. The company is confident that Punto Verde's extensive experience and profound market knowledge will serve as an ideal platform for expanding its footprint in Ecuador. Furthermore, this acquisition substantially reinforces its rapidly growing Green Solutions business. AMVAC anticipates leveraging Punto Verde's capabilities to develop its portfolio of AMGREEN bio-rational solutions. This deal underscores its unwavering commitment to creating a better world for future generations.
American Vanguard's shares have plunged 50.3% in the past year against the industry’s rise of 18.8% in the same period.
Image Source: Zacks Investment Research
In the second quarter of 2023, American Vanguard reported a loss of 4 cents per share, a significant decrease from earnings of 23 cents in the same period the previous year and falling short of the Zacks Consensus Estimate of 32 cents. Revenues for the quarter were $132.8 million, representing a 10% decline year-over-year and missing the Zacks Consensus Estimate of $166 million.
For the full year, AVD expects net sales in the range of $615-$625 million, with a gross margin of approximately 32%. Net income is projected to be in the range of $20-$24 million, and operating expenses are expected to be around 25% of net sales for the year 2023.
American Vanguard Corporation Price and Consensus
American Vanguard Corporation price-consensus-chart | American Vanguard Corporation Quote
Zacks Rank & Key Picks
American Vanguard currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are WestRock Company , sporting a Zacks Rank #1 (Strong Buy), and Air Products and Chemicals, Inc. (APD - Free Report) and The Andersons Inc. (ANDE - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Westrock’s current fiscal year has been revised upward by 5.2%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 16.1% in the past year.
The consensus estimate for Air Products’ current fiscal year earnings is pegged at $11.47, indicating year-over-year growth of 10.2%. APD beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 1.8%. The company’s shares have surged 22.3% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 57.8% in a year.