Cabinet maker American Woodmark misses Q2 sales estimates on lower demand

Overview

• American Woodmark fiscal Q2 net sales decline 12.8%, missing analyst expectations

• Adjusted EPS for fiscal Q2 misses analyst estimates

• Company cites lower demand and higher costs for decreased earnings

Outlook

• American Woodmark will not provide guidance due to pending merger with MasterBrand

• Company estimates tariffs impact 4-4.5% of annualized net sales

• Company focuses on structural cost reductions to mitigate tariff impacts

Result Drivers

• LOWER DEMAND - Co attributes net sales decline to reduced demand in new construction and remodel markets

• HIGHER COSTS - Increased tariff and input costs negatively impacted net income

• COST CONTROL - Adjusted EBITDA margins maintained through cost control measures and strategic actions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for American Woodmark Corp is $71.00, about 27% above its November 24 closing price of $51.85

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw50qydda

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