American Woodmark shares slide 6% on earnings miss, weak outlook

WINCHESTER, Va. - American Woodmark (NASDAQ:AMWD ) Corporation (NASDAQ:AMWD) shares fell sharply after the cabinet manufacturer reported first quarter earnings and revenue that missed analyst expectations and provided a cautious outlook for the full fiscal year.

The company's stock dropped 6.38% following the earnings release.

The company posted earnings per share of $1.89 for the quarter ended July 31, falling short of the $2.40 consensus estimate. Revenue declined 7.9% YoY to $459.1 million, below the $476.6 million analysts were expecting.

American Woodmark cited weaker than projected demand in the remodel market as the primary factor behind the disappointing results. The company now expects a low single-digit decline in net sales for fiscal 2025 compared to the previous year.

"Softer demand in the remodel market is expected to continue and we have seen a recent slowdown in new construction single family starts," said CEO Scott Culbreth.

For the full fiscal year, American Woodmark forecasts adjusted EBITDA in the range of $225 million to $245 million.

Despite the challenges, management emphasized efforts to gain market share across all channels to outperform overall market demand for the fiscal year.

American Woodmark repurchased 271,460 shares for $24 million during the quarter. As of July 31, the company had $89.3 million in cash on hand.

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Source: Investing.com