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Jan 31, 2024
American Woodmark Q3 2024 Earnings Report
American Woodmark's Q3 2024 financial performance reflected a decrease in net sales but an increase in net income and adjusted EPS, driven by operational improvements and strategic pricing, despite a slowing demand environment.
Key Takeaways
American Woodmark Corporation reported a 12.2% decrease in net sales to $422.1 million for the third quarter of fiscal year 2024, but net income increased by 44.1% to $21.2 million. GAAP EPS was $1.32, and Adjusted EPS was $1.66. The company reaffirmed its outlook for a low double-digit net sales decline for the full fiscal year but increased and narrowed its Adjusted EBITDA outlook to $247 million to $253 million.
Net sales decreased by 12.2% year-over-year to $422.1 million.
Net income increased by 44.1% year-over-year to $21.2 million.
GAAP EPS was reported at $1.32, with an adjusted EPS of $1.66.
The company repurchased 215,629 shares for $19.6 million during the quarter.
American Woodmark
American Woodmark
Forward Guidance
For the full fiscal year 2024, the company reaffirms a low double digit net sales decline year-over-year, with high single digit declines expected in the fourth fiscal quarter. The Adjusted EBITDA outlook is increased and narrowed to a range of $247 million to $253 million.
Positive Outlook
- Strong performance for the first three quarters of the fiscal year.
- Commitment to improving results sustained throughout the year.
- Adjusted EBITDA outlook increased and narrowed.
- Improved Adjusted EBITDA by 140 BPS to $50.6 million, or 12.0% of net sales in Q3.
- Teams have sustained performance throughout the year to help deliver on the commitment to improving our results
Challenges Ahead
- Reaffirming low double digit net sales decline year-over-year
- High single digit declines expected in the fourth fiscal quarter
- Excludes the impact of certain income and expense items that management believes are not part of underlying operations.
- Management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income
- These items could be significant, are difficult to predict, and may be highly variable.