search icon
      blog search icon

      American Woodmark Corp. (AMWD) Stock Dips Following Disclosure of Financial Reports for Q2 2021 - Stocks Telegraph

      By Shimrez Hyder

      Published on

      August 31, 2021

      5:57 PM UTC

      American Woodmark Corp. (AMWD) Stock Dips Following Disclosure of Financial Reports for Q2 2021 - Stocks Telegraph

      American Woodmark Corp. (AMWD) stock prices were down by 12.67% some time after market trading commenced on August 31st, 2021. This brought the price per share down to USD$70.21 early on in the trading day.

      AMWD Stock’s Net Sales Reports

      The first quarter of fiscal 2022 saw AMWD stock report net sales in the amount of USD$442.6 million. This is a 13.5% increase from the numbers reported for the prior-year quarter. The company reported growth across all of its channels as compared to the prior-year quarter. The repair and remodel sales channel reported growth in the high-teens, while the construction sales channel reported growth in the upper single digits. The year-over-year improvements were largely driven by the growth in market demand at a promising pace.

      Net Income Reports

      Net income came out to USD$3 million for Q1 2022, representing a net income of USD$0.18 per diluted share. This is compared to the USD$16.1 million reported in the prior-year quarter, representing a net income of USD$0.94 per diluted share. The year-over-year difference was largely attributable to the rapidly evolving inflationary pressures that outpaced the pricing actions undertaken across all of the company’s channels. This translated into 220 basis points of sequential pressure from Q4 2021 to Q1 2022, primarily related to materials and logistics costs.

      AMWD Stock’s Liquidity Position

      AMWD stock reported a solid liquidity position as of the end of the first quarter of 2022. As of July 31st 2021, the company reported USD$27.8 million in cash on hand, with additional access to USD$243 million under its revolving credit facility. The company does not have any term loan debt maturities until July 2023, but has paid down USD$29.1 million of its existing debt. The first quarter of 2022 also saw the company repurchase shares valued at USD$25 million.

      Continued Trajectory of Success

      On the basis of current sales levels, the company expects the impact of confirmed pricing actions to increase in the second half of fiscal 2022 to more than USD$25 million per quarter. This consolidated the company’s focus on increasing production to match a strong demand environment.

      Future Outlook for AMWD Stock

      The company reported a promising quarter, as evidenced by the strength of its financial reports for Q1 2022. AMWD stock is poised to capitalize on the opportunities presented to it as a result of the momentum it has generated. Investors are confident in management’s ability to effectively leverage the resources at their disposal. This is hoped to translate into organic growth over the long term.

      More From Stocks telegraph