American Vanguard (AVD) Q1 Earnings Beat, Sales Miss Estimates

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]