American Vanguard (NYSE:AVD) Issues Earnings Results, Misses Estimates By $0.60 EPS

American Vanguard (NYSE:AVD) announced its quarterly earnings data on Monday. The basic materials company reported ($0.61) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.60), Zacks reports. American Vanguard had a negative net margin of 11.99% and a negative return on equity of 16.02%. The firm had revenue of $108.38 million during the quarter, compared to analyst estimates of $130.00 million.

Here are the key takeaways from American Vanguard’s conference call:

• Third-quarter results weakened: Sales fell 9% to $108 million and adjusted EBITDA was approximately break-even, down $8.3 million year over year. Gross margin declined to 24.2% from 28.7%, as higher freight and raw-material costs and weaker international demand outweighed improved manufacturing performance and lower operating expenses.
• Full-year guidance was cut: American Vanguard now expects 2026 revenue of $500 million–$530 million, versus prior guidance of $530 million–$550 million, and adjusted EBITDA of $36 million–$40 million, down from $44 million–$48 million. Management cited international weakness and its inability to raise prices quickly enough to offset rising fuel and raw-material costs.
• Liquidity improved, but leverage remains elevated: Cash rose $40 million sequentially to $84 million, helped by customer prepayments that were up 44% year over year, while net debt fell to about $184 million. Gross leverage was 6.5x against a 6.7x covenant maximum, leaving limited headroom.
• Management expects a stronger fourth quarter: It forecast sales of about $166 million, up 10% year over year, and adjusted EBITDA of $21 million, up roughly 25%. The outlook relies on improved U.S. sales, new products and portfolio additions, better manufacturing absorption, and cost savings; management cautioned that fourth-quarter business is not fully secured.
• New products and acquired portfolios are intended to support growth: A Syngenta brand acquisition and Sipcam distribution agreement are projected to add $15 million–$20 million in annualized revenue over the next 12 months. The company also reiterated its goal of exceeding a $600 million annualized sales run rate by the second half of 2028, while targeting double-digit EBITDA margins.

American Vanguard Stock Performance

NYSE:AVD traded up $0.02 during trading hours on Wednesday, reaching $0.84. 124,678 shares of the company’s stock were exchanged, compared to its average volume of 333,812. The company has a quick ratio of 1.40, a current ratio of 2.47 and a debt-to-equity ratio of 1.46. American Vanguard has a 1-year low of $0.81 and a 1-year high of $5.55. The company has a 50-day moving average of $1.61 and a 200 day moving average of $2.76. The firm has a market capitalization of $24.66 million, a price-to-earnings ratio of -0.40 and a beta of 1.56.

Insider Activity

In other American Vanguard news, Director Steven D. Macicek acquired 19,000 shares of the stock in a transaction on Monday, August 17th. The shares were bought at an average price of $2.09 per share, with a total value of $39,710.00. Following the acquisition, the director owned 99,711 shares of the company’s stock, valued at $208,395.99. This trade represents a 23.54% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Keith Rosenbloom sold 556,580 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $2.20, for a total transaction of $1,224,476.00. Following the sale, the director owned 15,201 shares in the company, valued at $33,442.20. The trade was a 97.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 5.60% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently commented on AVD. Weiss Ratings reiterated a “sell (e+)” rating on shares of American Vanguard in a research note on Thursday, August 13th. Wall Street Zen downgraded American Vanguard from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. One equities research analyst has rated the stock with a Sell rating. Based on data from MarketBeat, the company has a consensus rating of “Sell”.

About American Vanguard

American Vanguard Corporation, doing business primarily through its AMVAC subsidiary, develops, manufactures and markets specialty agricultural products. The company’s portfolio includes crop protection products such as insecticides, herbicides, fungicides, nematicides and soil fumigants designed to help growers manage pests, weeds and plant diseases. In addition to crop protection, American Vanguard serves the professional and consumer markets for turf and ornamental care, golf course management, pest control and public health.