Core Insights - American Vanguard (AVD) reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, marking an earnings surprise of -800% [1] - The company's revenues for the quarter ended June 2024 were $128.21 million, missing the Zacks Consensus Estimate by 4.46% and down from $132.79 million a year ago [1] - The stock has underperformed significantly, losing about 28.3% since the beginning of the year compared to the S&P 500's gain of 9% [2] Company Performance - Over the last four quarters, American Vanguard has surpassed consensus EPS estimates only once [1] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $150 million, and for the current fiscal year, it is $0.32 on revenues of $605.5 million [4] - The estimate revisions trend for American Vanguard is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Chemical - Specialty industry, to which American Vanguard belongs, is currently in the top 43% of over 250 Zacks industries, suggesting a relatively strong industry performance [5] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, indicating potential for better performance within the industry [5] - Another company in the same industry, Flexible Solutions International Inc. (FSI), is expected to report quarterly earnings of $0.07 per share, with revenues projected at $10.34 million, reflecting a slight increase from the previous year [5]

Core Viewpoint - American Vanguard (AVD) is anticipated to report a year-over-year increase in earnings due to higher revenues, with the consensus outlook indicating a quarterly loss of $0.01 per share, reflecting a 75% improvement compared to the previous year [1][2]. Revenue Expectations - Revenues for the upcoming quarter are projected to be $134.2 million, which represents a 1.1% increase from the same quarter last year [2]. Estimate Revisions Trend - The consensus EPS estimate has been revised down by 9.09% over the last 30 days, indicating a reassessment by analysts of their initial estimates [3]. Earnings Whisper and ESP - The Zacks Earnings ESP (Expected Surprise Prediction) model shows that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% for American Vanguard [4][6][7]. Zacks Rank and Predictive Power - American Vanguard currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat, as stocks with a negative Earnings ESP and lower Zacks Rank are less likely to outperform [5][7]. Historical Performance - In the last reported quarter, American Vanguard exceeded the consensus EPS estimate by 12.50%, but has only beaten estimates once in the past four quarters [8]. Conclusion - While American Vanguard is not positioned as a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [9].

Core Insights - Vanguard's annual report indicates that while Americans are saving more for retirement, many still rely heavily on Social Security, highlighting a need for increased savings [1][10] Group 1: Savings and Participation Rates - The average total return rate for 401(k) participants in 2023 was 18.1%, marking the best year since 2019 [2] - Participation in 401(k) plans reached record highs, with 59% of plans offering automatic enrollment, leading to a 94% participation rate in those plans compared to 67% for voluntary enrollment [2][3] - The average participant deferred 7.4% of their savings, with total contributions averaging 11.7% when including employer contributions [3] Group 2: Investment Preferences - Participants showed a strong preference for equities, with 74% of contributions directed towards stocks, and 64% of contributions going into target-date funds [3] Group 3: Account Balances - The average account balance for Vanguard participants was $134,128, while the median balance was significantly lower at $35,286, indicating a disparity driven by a small group of high-balance investors [5] - For those aged 65 and older, the average account balance was $272,588, but the median balance was only $88,488, raising concerns about retirement preparedness [7] Group 4: Retirement Income Analysis - A typical annual drawdown of 4% from a median balance of $88,488 yields only $3,539 annually, combined with Social Security benefits of approximately $20,268, leading to a total of about $33,065 per year [8][9] - Only 57% of retirees have a tax-deferred retirement account, and 56% receive pension income, which significantly affects their financial well-being in retirement [9] Group 5: Recommendations for Improvement - To enhance retirement security, Americans need to save more, as only 14% of participants contribute the maximum allowed amount of $22,500 per year [10] - There is a need for increased investor education, especially among higher-income earners, as only 53% of those earning over $150,000 maxed out their contributions [10]

Core Insights - American Vanguard Corporation (AVD) reported earnings of 6 cents per share for Q1 2024, down from 7 cents a year ago, but adjusted earnings of 9 cents exceeded the Zacks Consensus Estimate of 8 cents [1] - Revenues for the quarter were $135.1 million, an 8% year-over-year increase, but fell short of the Zacks Consensus Estimate of $141.2 million [1] Sales by Regions - U.S. crop business revenues increased by 9% year over year to approximately $67.3 million, driven by strong sales of granular soil insecticides, herbicides, and cotton and peanut products [2] - U.S. non-crop business revenues rose around 28% year over year to about $17.8 million, significantly boosted by sales of mosquito adulticides, pest strips, and OHP products for nursery and ornamental uses [2] - International business revenues grew by 2% year over year to around $50.1 million, supported by sales in Mexico and the APAC region [2] Financials - The company ended the quarter with cash and cash equivalents of roughly $13.7 million, a 20% sequential increase [3] - Long-term debt rose to approximately $187 million, reflecting a 34% sequential increase [3] Outlook - AVD anticipates stable market conditions with a strong farm economy and a more relaxed procurement approach, projecting net sales growth of 6% to 9% year over year for 2024 [4] - The company expects full-year adjusted EBITDA to be in the range of $60 million to $70 million [4] Price Performance - AVD's shares have declined by 44.8% over the past year, compared to a 10.1% decline in the industry [5]

Financial Performance - The company recorded a 35% increase in adjusted EBITDA and an 87% rise in operating income, indicating effective cost control initiatives [5] - Overall sales increased by 8%, from $125 million to $135 million, with US crop sales up 9%, US non-crop sales up 28%, and international sales up 2% [8][10] - Gross margin improved from 30.8% to 31.4% of sales, driven by stronger sales of higher-margin products [9] Business Line Performance - In the US crop segment, granular soil insecticides and herbicides saw strong sales, particularly due to increased demand from corn growers and recovery from supply issues [6] - The US non-crop segment experienced a significant increase in mosquito adulticide sales and pest strips, reflecting recovery in consumer and technical markets [6] - International sales were slightly up, led by growth in Mexico and favorable weather conditions in Australia, while LATAM remained stable [7] Market Conditions - The US economy shows signs of improvement, with the Federal Reserve shifting focus from interest rate hikes to potential cuts, which may stabilize commodity prices [13] - The farm economy remains strong, with stable buying activity expected from distribution partners [13] Company Strategy and Industry Competition - The company is undergoing transformation initiatives aimed at improving operational efficiency and achieving $15 million in annualized adjusted EBITDA by 2026 [15] - A voluntary suspension of sales for the herbicide Dacthal due to EPA concerns has led to a revised sales outlook, with expected net sales growth adjusted to 6% - 9% for 2024 [14] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism regarding market conditions, noting that while the farm economy is strong, buying activity is more deliberate [13] - The company anticipates initial benefits from transformation efforts in 2024, with more significant improvements expected in 2025 [20] Other Important Information - Cash at the end of the quarter was $13.7 million, down from $19.6 million the previous year, reflecting efforts to reduce debt [9] - The company is managing inventory levels carefully, aiming for a year-end target of around 34% of net sales [12] Q&A Session Summary Question: Clarification on transformation strategy and cost savings - Management confirmed that while some benefits from transformation will be seen in 2024, costs will overshadow these benefits, with significant improvements expected in 2025 [20] Question: Impact of Dacthal on sales outlook - Dacthal is a $15 million product, and management has assumed no sales for the remainder of the year while awaiting EPA review [22] Question: Grower sentiment and demand trends - Growers in the Midwest are cautious, with some optimism due to recent price increases, but wet conditions have delayed planting [33] Question: Herbicide market dynamics - The herbicide market has improved compared to last year, but there are still challenges, particularly for larger peers [36]

Financial Performance - Net sales increased to $135 million, up 8% from $125 million in Q1 2023[1] - Adjusted EBITDA rose to $15.5 million, a 35% increase compared to $11.5 million in the same quarter last year[1] - Operating income improved to $6.1 million, up 87% from $3.3 million in Q1 2023[1] - Gross profit for the quarter was $42.4 million, a 10% increase from $38.5 million in the previous year[11] - Net income for the three months ended March 31, 2024, was $1,552 million, a decrease of 19.1% compared to $1,918 million for the same period in 2023[13] - Adjusted EBITDA for the three months ended March 31, 2024, was $15,516 million, an increase of 35.5% from $11,511 million in the same period last year[15] Sales Growth - The company expects annual net sales growth of 6% to 9% and adjusted EBITDA target of $60 million to $70 million[2] - U.S. crop sales reached $67.3 million, a 9% increase, while U.S. non-crop sales surged by 28% to $17.8 million[11] - International sales grew to $50.1 million, reflecting a 2% increase from $49.1 million in Q1 2023[11] Cash and Assets - Cash and cash equivalents increased to $13.7 million from $11.4 million at the end of 2023[8] - Total assets rose to $781.6 million, up from $767.5 million at the end of the previous year[8] - Cash at the end of the period on March 31, 2024, was $13,709 million, down from $19,568 million at the end of the same period in 2023[13] Operating Activities - Net cash used in operating activities for the three months ended March 31, 2024, was $(42,424) million, compared to $(41,452) million for the same period in 2023[13] - Capital expenditures for the three months ended March 31, 2024, were $(3,565) million, an increase from $(2,590) million in the same period last year[13] - Net cash provided by financing activities for the three months ended March 31, 2024, was $47,699 million, compared to $43,777 million for the same period in 2023[13] Expenses and Provisions - Stock-based compensation for the three months ended March 31, 2024, was $2,005 million, an increase of 36% from $1,474 million in the same period last year[15] - Provision for income taxes for the three months ended March 31, 2024, was $1,484 million, compared to a tax benefit of $(361) million for the same period in 2023[15] - Interest expense, net for the three months ended March 31, 2024, was $3,693 million, an increase from $1,686 million in the same period last year[15] Customer Prepayments - Decrease in customer prepayments for the three months ended March 31, 2024, was $(37,037) million, compared to $(22,759) million for the same period in 2023[13] Future Projections - The company anticipates an additional $15 million in adjusted EBITDA annually by 2026 from its transformation program[1]

Financial Performance - Net income for the three months ended March 31, 2024, was $1,552,000, a decrease of 19.1% compared to $1,918,000 for the same period in 2023[16] - Comprehensive loss income for the same period was $(12,000), significantly down from $4,464,000 in 2023, indicating a negative shift in overall financial performance[16] - Total net sales for the three months ended March 31, 2024, reached $135,143,000, representing an increase of 8.9% from $124,885,000 in the prior year[33] - U.S. crop sales increased to $67,257,000, up 8.1% from $61,876,000 in the same quarter of 2023[33] - U.S. non-crop sales rose to $17,768,000, a significant increase of 27.5% compared to $13,899,000 in the previous year[33] - The Company reported a net income of $1,552 (or $0.06 per share) for Q1 2024, down from $1,918 (or $0.07 per share) in Q1 2023[73] - Income tax expense for Q1 2024 was $1,484, compared to a tax benefit of $361 in Q1 2023, resulting in an effective tax rate of 48.9%[83] Assets and Liabilities - Total current assets increased to $446,945,000 as of March 31, 2024, up from $432,021,000 at the end of 2023, reflecting a growth of 3.4%[17] - Total assets rose to $781,625,000 as of March 31, 2024, compared to $767,548,000 at December 31, 2023, marking an increase of 1.8%[18] - Total liabilities increased to $410,042,000 as of March 31, 2024, up from $397,538,000 at the end of 2023, representing a rise of 3.8%[19] - Long-term debt increased to $187,017,000 as of March 31, 2024, compared to $138,900,000 at December 31, 2023, indicating a significant increase of 34.6%[19] - Total indebtedness, net of deferred loan fees, increased to $185,890,000 as of March 31, 2024, compared to $137,682,000 as of December 31, 2023[42] Cash Flow and Operating Activities - Net cash used in operating activities was $(42,424,000) for the three months ended March 31, 2024, compared to $(41,452,000) in the same period of 2023[25] - Cash and cash equivalents increased to $13,709,000 as of March 31, 2024, up from $11,416,000 at the end of 2023, reflecting a growth of 20.1%[17] - Financing activities provided $47,685 in Q1 2024, up from $43,777 in Q1 2023, with net borrowings under the Credit Agreement amounting to $48,117 compared to $44,700 in the prior year[90] Expenses and Costs - Operating expenses increased by 3% year-over-year, but decreased as a percentage of sales to 27% from 28%[72] - Interest expense rose due to increased average borrowings and higher working capital levels, impacting the Company's financial performance[73] - The company recognized depreciation expense of $2,170,000 for the three months ended March 31, 2024, slightly down from $2,179,000 in the previous year[35] - Stock-based compensation expense for the three months ended March 31, 2024, was $2,005,000, compared to $1,474,000 for the same period in 2023[48] Inventory and Sales - Inventories rose to $228,309,000 as of March 31, 2024, compared to $219,551,000 at December 31, 2023, an increase of 4.0%[17] - Gross profit increased by 10% to $42,418, maintaining a stable gross margin of 31%[76] - Cost of goods sold rose by 7% in line with sales growth, while gross margins remained constant at 31% compared to the same period in 2023[72] Compliance and Regulatory Matters - The Company is in compliance with the terms of the Credit Agreement as of March 31, 2024[46] - The Company voluntarily suspended sales of Dacthal pending review of a narrower label after concerns from USEPA regarding health effects[57] - The FASB issued ASU No. 2023-07 and ASU No. 2023-09, which will impact segment reporting and income tax disclosures, effective after December 15, 2023, and December 15, 2024, respectively[58][59] Shareholder Activities - The company declared cash dividends on common stock of $0.030 per share during the quarter[22] - The Company paid dividends of $834 in Q1 2024, slightly down from $851 in Q1 2023[90] - The Company repurchased 27,835 shares of common stock at an average price of $19.96 during Q1 2024, with a maximum of 557 shares remaining under the repurchase plan[67]

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--American Vanguard Corporation (NYSE: AVD), today announced that it will report financial results for the first quarter ended March 31, 2024, on Thursday, May 9, 2024, after the close of the stock market.Eric Wintemute, Chairman & CEO, David T. Johnson, VP & CFO, and Bob Trogele, EVP & COO, will conduct a conference call focusing on operating performance and financial results at 4:15 pm ET / 1:15 pm PT on May 9, 2024. Interested parties may participate in the call by d ...

Core Insights - American Vanguard Corporation will report its financial results for Q1 2024 on May 9, 2024, after market close [1] - A conference call will be held at 4:15 pm ET / 1:15 pm PT on the same day to discuss operating performance and financial results [1] - The conference call will be accessible via phone and will also be webcast live on the company's website [2] Company Overview - American Vanguard is a diversified specialty and agricultural products company focused on crop protection, nutrition, turf management, and pest control [3] - The company has expanded its operations into 17 countries and holds over 1,000 product registrations in 56 nations [3] - Its growth strategy includes three initiatives: Core Business innovation, Green Solutions with over 130 biorational products, and Precision Agriculture innovation [3] - American Vanguard is listed on the Russell 2000® and Russell 3000® Indexes [3]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...