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American Woodmark reports mixed Q4 results amidst remodel market challenges

EditorRachael Rajan
Published 24/05/2024, 06:20 am
© Reuters.
AMWD
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WINCHESTER, Va. - American Woodmark (NASDAQ:AMWD) Corporation (NASDAQ:AMWD) reported its financial results for the fourth quarter ended April 30, 2024, with a mixed outcome compared to analyst expectations.

The company posted an adjusted EPS of $1.70, falling short of the consensus estimate of $1.78. However, revenue exceeded expectations at $453.3 million, surpassing the forecasted $440.86 million.

The fourth quarter saw a decline in net sales by 5.8% compared to the same period last year, totaling $453.3 million. Net income also decreased by 11.1% YoY to $26.8 million. The adjusted EBITDA for the quarter experienced a 16.2% drop YoY to $54.7 million.

Despite the challenges in the remodel market, CEO Scott Culbreth highlighted the company's ability to exceed expectations for the quarter, attributing it to improved demand and strategic focus on automation and operational excellence.

For the full fiscal year 2024, net sales were down 10.6% YoY to $1,847.5 million, while net income saw a significant increase of 24.0% YoY to $116.2 million. The adjusted EPS for the year was $8.53, up from the previous year's $7.62. The company's focus on pricing strategies and operational efficiencies contributed to the increase in net income, despite one-time startup costs for new locations.

Looking ahead, American Woodmark anticipates a low single-digit increase in net sales for fiscal 2025 and projects adjusted EBITDA to be between $235 million and $255 million. CFO Paul Joachimczyk expressed confidence in the company's operational and commercial performance, setting the stage for continued growth and investment in automation and digital transformation.

The company's balance sheet shows a strong position with $87.4 million in cash and additional credit facility access. During the fiscal year 2024, American Woodmark repurchased over 1.1 million shares for $87.7 million, demonstrating its commitment to returning value to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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