The 10-second takeaway
For the quarter ended Jan. 31 (Q3), American Woodmark beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share expanded.
Gross margins grew, operating margins grew, net margins dropped.
American Woodmark reported revenue of $120.0 million. The six analysts polled by S&P Capital IQ foresaw sales of $114.7 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $111.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.19. The six earnings estimates compiled by S&P Capital IQ predicted -$0.27 per share on the same basis. GAAP EPS were -$0.63 for Q3 against -$0.41 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.2%, 130 basis points better than the prior-year quarter. Operating margin was -4.5%, 390 basis points better than the prior-year quarter. Net margin was -7.6%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $132.1 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $510.3 million. The average EPS estimate is -$0.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 37 members out of 66 rating the stock outperform, and 29 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give American Woodmark a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Woodmark is outperform, with an average price target of $16.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.