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AMWD Nasdaq· American Woodmark Corp
Earnings report Q4 2023

American Woodmark Corporation Reports Decrease in Revenue for Q2 Fiscal 2024

Segments of Revenue

American Woodmark Corporation reported net sales of $473.9 million for the second quarter of fiscal 2024, representing a decrease of 15.6% compared to the same period in the prior year. For the first six months of fiscal 2024, net sales amounted to $972.1 million, reflecting a decrease of 12.0% compared to the same period in the prior year.

Strengths

Despite the decrease in revenue, American Woodmark Corporation demonstrated strength in its gross profit, which increased by 4.5% to $103.2 million for the second quarter of fiscal 2024. This improvement can be attributed to pricing adjustments that better matched inflationary impacts, favorable product mix, and enhanced efficiencies in the manufacturing platforms. The company's operations team has been successful in driving excellence in the manufacturing plants, leading to improved profitability.

Challenges

American Woodmark Corporation faced challenges in its net sales performance, with a significant decline of 15.6% in the second quarter of fiscal 2024 compared to the same period in the prior year. This decline can be attributed to various factors, including the absence of a single indicator directly correlating with cabinet remodeling market activity. The company also highlighted factors such as credit availability, homeowner equity, and housing affordability as additional indicators of overall market activity.

Noteworthy

It is noteworthy that American Woodmark Corporation experienced a pre-tax charge of $4.9 million related to a plywood case during the second quarter of fiscal 2024. This charge impacted the company's financial performance during the period.

Summary

American Woodmark Corporation faced challenges in its revenue performance for the second quarter of fiscal 2024, with a significant decrease of 15.6% compared to the same period in the prior year. However, the company demonstrated strength in its gross profit, which increased by 4.5% due to pricing adjustments, favorable product mix, and improved manufacturing efficiencies. The decline in revenue can be attributed to various factors, and the company considers indicators such as credit availability, homeowner equity, and housing affordability as additional measures of overall market activity. The pre-tax charge related to a plywood case also impacted the company's financial performance during the quarter.

Source documents

Form 10-Q  filed on Nov 30, 2023
85 pages scanned

Reference data

Company financials Q4 revenue 474M
Analyst estimates Q4 EPS beat by 18.35%
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