NYSE$AVD

American Vanguard Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

American Vanguard's financial performance declined in Q2 2023 due to industry-wide destocking and increased competition, but the company anticipates a rebound in the second half of the year.

American Vanguard reported a decrease in net sales and net income for Q2 2023, which they attribute to a sharp drop in procurement activity across the global agriculture industry as distributors destocked inventory due to high interest rates. They also faced increased competition in Central America and Brazil. The company expects demand to improve in the second half of the year as growers prepare for the 2024 planting season.

  • Net sales decreased to $132.79 million, compared to $148.203 million in Q2 2022.
  • The company experienced a net loss of $1.053 million, a significant decline from the $6.830 million net income in Q2 2022.
  • EPS was reported at -$0.04, down from $0.23 in the same quarter last year.
  • The company is initiating a share repurchase program, authorized to purchase up to $7.5 million of its common stock.

Headline financials

Total Revenue

$133M

Previous: $148M-10.3%
EPS (adj)

-$0.04

Previous: $0.23-117.4%
Capital Expenditures

-$6.5M

Previous: -$5.65M-14.9%
Free Cash Flow

-$7.55M

Previous: $1.18M-742.1%
Net Income

-$1.05M

Previous: $6.83M-115.4%
Operating Income

$3.75M

Previous: $10.8M-65.3%
Gross Profit

$42.9M

Previous: $59.8M-28.2%
Cash & Equivalents

$14.6M

Previous: $22.1M-33.7%
Total Assets

$773M

Previous: $744M+3.9%
Stock-Based Comp

$1.07M

Previous: $1.27M-16.2%

Revenue & EPS history

American Vanguard · Revenue · Quarterly

$133M

Q2 2023-10.3%vs Q2 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

American Vanguard · $150M total across 3 segments · Q3 2023

  • U.S. Crop
    $67.7M-2.0%
  • International
    $62.5M-2.4%
  • U.S. Non-Crop
    $19.3M+1.7%

Forward guidance

American Vanguard anticipates improved demand in the second half of 2023 and has revised its full-year performance targets.

Tailwinds

  • Stable commodity prices
  • Strong farm economy
  • Low channel inventory of crop products
  • Expected demand improvement as growers prepare for the 2024 planting season
  • Share repurchase program authorized, demonstrating confidence in the company's prospects

Headwinds

  • Uncertainty regarding the complete cessation of destocking activity
  • Revised 2023 performance targets reflect lower expectations
  • Global Agriculture industry experienced a sharp, unexpected drop in procurement activity
  • Businesses in Central America and Brazil faced a flood of low-priced, generic product from China-based suppliers
  • Second quarter financial performance was adversely affected by these factors

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.0%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-2.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+18.9%

Q4 2015

Best reaction

-34.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-1.0%-9.8%
Q4 2025-9.6%-30.9%-24.6%
Q3 2025-0.8%-0.4%-14.9%
Q1 2025-9.2%-8.5%-19.2%
Q4 2024-5.7%+6.2%-20.0%
Q3 2024+2.1%+5.0%-5.7%
Q2 2024-34.9%-28.5%-20.5%
Q1 2024-26.6%-30.6%-30.4%
Q4 2023+15.3%+9.4%+4.5%
Q3 2023+1.1%-12.3%+5.1%
Q2 2023-16.6%-13.1%-24.7%
Q1 2023-12.9%-9.9%-3.1%
Q4 2022+4.9%+5.5%+7.8%
Q3 2022-4.4%-6.6%-4.8%
Q2 2022-18.2%-15.5%-19.8%
Q1 2022+5.6%-4.5%+17.9%
Q4 2021+2.6%+6.5%+24.0%
Q3 2021+4.3%+3.0%-9.2%
Q2 2021-0.7%-6.6%-3.5%
Q1 2021-3.3%-5.8%-14.6%
Q4 2020+2.1%-2.0%-8.6%
Q3 2020+9.2%+8.3%+21.8%
Q2 2020+4.6%+3.0%+1.0%
Q1 2020-1.9%-9.6%-3.1%
Q4 2019-4.6%-9.3%+2.3%
Q3 2019+5.0%+6.4%+8.4%
Q2 2019+5.4%+3.0%+13.8%
Q1 2019-0.3%-8.3%-19.6%
Q4 2018+6.2%-1.1%-2.1%
Q3 2018-5.6%-1.9%-7.5%
Q2 2018-4.2%-9.3%-4.0%
Q1 2018+11.7%+0.9%+10.5%
Q4 2017+16.0%+15.5%+9.8%
Q3 2017-6.1%-10.1%-10.8%
Q2 2017+9.7%+13.1%+10.0%
Q1 2017+10.9%+9.1%+9.4%
Q4 2016-4.0%-6.2%+4.7%
Q3 2016+0.3%+3.3%+14.3%
Q2 2016+17.6%+16.2%+12.2%
Q1 2016-21.8%
Q4 2015+18.9%
Q3 2015+14.0%
Q2 2015+0.8%
Q1 2015+14.6%
Q4 2014-1.7%
Q3 2014+6.4%
Q2 2014+2.6%
Q1 2014-13.1%
Q4 2013-4.3%
Q3 2013+8.9%
Q2 2013+3.3%
Q1 2013+7.7%
Q4 2009+0.2%
Q4 2012-11.0%
Q3 2012+1.7%
Q2 2012+12.5%
Q1 2012+4.1%
Q4 2011+2.0%
Q3 2010-6.8%
Q3 2011-6.8%
Q2 2010-15.6%
Q1 2011-15.6%
Q2 2011-15.6%
Q4 2010-15.6%
Q1 2010+4.5%

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