American Woodmark’s stock rises to a 3-month high in the wake of Q1 earnings results

American Woodmark

American Woodmark (NASDAQ:AMWD)

The share price of American Woodmark (NASDAQ:AMWD) increased to a 3-month high on Tuesday after the cabinet maker revealed Q1 earnings that exceeded Street expectations and were aided by pricing increases.

AMWD announced Q1 adj. EPS of $1.71, up from $0.70 in Q1 2022, driven by stronger revenue and improved efficiencies, with higher material and shipping costs serving as a partial offset.

Y/Y revenue increased by 22.7%, to $542.89 million, with growth reported by AMWD across all sales channels. Due to higher net income and accrued expenses, operating operations generated $37.3 million in cash, which was followed by $32.7 million in free cash flow.

As of July 31, AMWD had $239.4 million more available under its revolving loan facility and $33.7 million in cash on hand, with no term loan debt maturities until July 2023.

In Q1, AMWD paid back $20.6 million of its debt.

Shares of AMWD have dropped 33.2% over the past year and 16.3% year to date.

American Woodmark financials 

Looking at Q1 of the fiscal year 2023 to the same period of 2022, net sales climbed by $100.3 million, or 22.7%, to $542.9 million. In comparison, the company saw an increase in its sales channels during the Q1 of fiscal 2023. 

In Q1 of fiscal 2023, net income was $20.1 million ($1.21 per diluted share), up from $3 million ($0.18 per diluted share) in the corresponding period of 2022. In Q1 of fiscal 2023, net sales climbed primarily as a result of price increases and improved efficiency. This increase in net sales was only partially offset by higher material and logistical expenses.

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