NYSE$AVD

American Vanguard Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported mixed results with modestly higher top line and declining profitability compared to 2018, due to adverse weather, tariffs, and supply disruptions.

American Vanguard reported fourth quarter 2019 financial results with net sales of $131 million and net income of $3.4 million, compared to $131 million and $7.4 million respectively in the fourth quarter of 2018. The company's international business drove revenue growth, offsetting weather-related declines in domestic sales. The company is targeting global revenues to grow at a low double-digit rate in 2020.

  • Net sales remained flat at $131 million compared to Q4 2018.
  • Net income decreased to $3.4 million from $7.4 million in Q4 2018.
  • Earnings per diluted share declined to $0.12 from $0.25 in Q4 2018.
  • EBITDA decreased to $12.0 million from $16.6 million in Q4 2018.

Headline financials

Total Revenue

$131M

Previous: $131M+0.0%
EPS (adj)

$0.12

Previous: $0.25-52.0%
Net Income

$3.4M

Previous: $7.42M-54.2%
Operating Income

$6.24M

Previous: $11.4M-45.2%
Gross Profit

$46.5M

Previous: $53M-12.2%
Cash & Equivalents

$6.58M

Previous: $6.17M+6.7%
Total Assets

$670M

Previous: $594M+12.9%
Stock-Based Comp

$2M

Previous: $1.57M+27.5%

Revenue & EPS history

American Vanguard · Revenue · Quarterly

$131M

Q4 2019+0%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
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

Assuming normal weather patterns and minimal disruption in trade and supply from COVID-19, the company is targeting global revenues to grow at a low double-digit rate.

Tailwinds

  • Larger corn acreage in the U.S.
  • Renewed availability of bromacil herbicides
  • Ten new product introductions
  • Growth of LATAM businesses
  • Continued financial discipline to strengthen the balance sheet

Headwinds

  • Adverse weather conditions
  • Disruptions in trade
  • Disruptions in supply from COVID-19
  • Tariffs
  • Supply disruptions

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 Q4 2019

Historical avgQ4 2019

-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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