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American Vanguard (AVD) Q2 Earnings and Sales Miss Estimates

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American Vanguard Corporation (AVD - Free Report) logged a loss of 42 cents per share in the second quarter of 2024 compared with a loss of 4 cents a year ago.

Barring one-time items, adjusted loss came in at 9 cents per share for the quarter. It was wider than the Zacks Consensus Estimate of a loss of a penny per share.

Revenues were $128.2 million for the reported quarter, down around 3% year over year. It missed the Zacks Consensus Estimate of $134.2 million. The top line was impacted by unfavorable market conditions in the reported quarter. AVD, however, registered double-digit sales increases in its domestic non-crop business and Green Solutions products, aided by strong demand in Central America.

 

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

Revenues from American Vanguard’s U.S. crop business in the reported quarter went down roughly 7% year over year to around $52.3 million. Within the U.S. Crop business, AVD recorded higher sales in the granular insecticide category, partly offset by lower sales of Aztec and soil fumigants.

Sales from the U.S. non-crop business rose around 13% year over year to around $19 million. Higher biologicals and pest strip sales were partly offset by lower Dibrom mosquito adulticide sales.

Revenues from international businesses were down around 5% year over year to around $56.9 million. Sales were impacted by lower herbicides sales.

Financials

American Vanguard ended the quarter with cash and cash equivalents of roughly $17.9 million, up around 31% sequentially. Long-term debt was around $211.3 million, up around 13% sequentially.

Outlook

AVD lowered its full-year 2024 guidance for adjusted EBITDA to $40-$50 million from its previous estimate of $60-$70 million. It now sees net sales for the year to be down 2%-to-flat compared with its earlier estimate of sales growth of 6-9%. The revised guidance is based on the current state of the market and the company’s projected demand, which it expects to be stable.

Price Performance

American Vanguard’s shares have lost 62.8% in a year against a 13.9% decline of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Other Chemicals Releases

AVD currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quaker Chemical Corporation (KWR - Free Report) logged adjusted earnings for the second quarter of $2.13 per share, missing the Zacks Consensus Estimate of $2.21. KWR expects to deliver earnings growth in 2024, notwithstanding the challenging end-market environment, which it expects to continue through the end of the year.

Ingevity Corporation (NGVT - Free Report) reported adjusted earnings of $1.01 per share for the second quarter, down from $1.41 a year ago. The figure missed the Zacks Consensus Estimate of $1.05.

NGVT revised its sales guidance for 2024 to $1.4-$1.5 billion and adjusted EBITDA outlook to $350-$360 million.

Element Solutions Inc’s (ESI - Free Report) adjusted earnings came in at 36 cents per share for the second quarter. The figure beat the Zacks Consensus Estimate of 35 cents.

Element Solutions now expects adjusted EBITDA in the range of $530-$545 million for 2024. ESI anticipates generating a free cash flow in the range of $280-$300 million for 2024.

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