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

American Vanguard (NYSE:AVD) released 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 return on equity of 9.05% and a negative net margin of 10.70%. 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

AVD stock traded down $0.14 during trading on Monday, reaching $0.82. 730,170 shares of the company’s stock were exchanged, compared to its average volume of 333,934. 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’s fifty day moving average price is $1.66 and its 200-day moving average price is $2.80. The firm has a market cap of $24.13 million, a PE ratio of -0.43 and a beta of 1.56.

Insider Buying and Selling at American Vanguard

In related news, Director Steven D. Macicek acquired 19,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were acquired at an average cost of $2.09 per share, for a total transaction of $39,710.00. Following the completion of the purchase, the director directly owned 99,711 shares in the company, 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 SEC, which is accessible through the SEC website. Also, Director Keith M. Rosenbloom sold 556,580 shares of the company’s stock in a transaction dated 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 completion of the sale, the director directly owned 15,201 shares of the company’s stock, valued at $33,442.20. The trade was a 97.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 5.60% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Wall Street Zen lowered shares of American Vanguard from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings restated a “sell (e+)” rating on shares of American Vanguard in a research report on Thursday, August 13th. One equities research analyst has rated the stock with a Sell rating. According to MarketBeat.com, American Vanguard 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.