American Woodmark Corp. (AMWD) announced its earnings and revenue for the fourth quarter that easily beat consensus forecast, sending its shares up more than 7 percent in the pre-market trading session on Tuesday. The strong results were mainly driven by lower incentive expenses and solid sales volumes.
The Winchester, Virginia-based company reported earnings of $19.1 million, or $1.08 per share for the three-month period ended April 30, as compared to $17.3 million, or $1.06 per share in the same period, one year ago.
On an adjusted basis, the company earned $1.64 per share, up from $1.13 last year, and well above analysts’ average estimates of $1.12.
Chief Executive Officer Cary Dunston said the company is quite happy with its performance during the last quarter, with an adjusted EBITDA margin of 16.1 percent. American Woodmark’s integration work is advancing as per plan as it remains focused on strategically leveraging its combined businesses to boost its shares in the market, he added.
Revenue for the quarter came in at $405.9 million, significantly higher from $258.7 million in the comparable quarter, a year earlier. Analysts on average were looking for $382.4 million in revenues.
Sales numbers also include revenue from recently acquired RSI Home Products Inc., the company said.
The kitchen and bath cabinet maker said revenue was partly hurt by acquisition-related expenses of $2.7 million and intangible amortization of $12.3 million. Gross-margin declines in its key business, primarily due to raw material inflation, also weighed on the company’s revenue.
American Woodmark manufactures kitchen, bath and home organization products, which are sold directly to home centres, builders and suppliers as well as through a network of independent merchants.
