American Vanguard (NYSE:AVD) Releases Quarterly Earnings Results, Misses Expectations 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 (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.60), Zacks reports. The firm had revenue of $108.38 million for the quarter, compared to analysts’ expectations of $130.00 million. American Vanguard had a negative return on equity of 9.05% and a negative net margin of 10.70%.

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 Price Performance

NYSE AVD opened at $0.82 on Tuesday. American Vanguard has a fifty-two week low of $0.81 and a fifty-two week high of $5.55. The stock’s 50-day moving average is $1.63 and its two-hundred day moving average is $2.78. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.47 and a quick ratio of 1.40. The firm has a market cap of $24.13 million, a P/E ratio of -0.43 and a beta of 1.56.

Insider Transactions at American Vanguard

In other news, Director Keith 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 owned 15,201 shares in the company, valued at approximately $33,442.20. This represents a 97.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Steven D. Macicek acquired 19,000 shares of the stock in a transaction dated Monday, August 17th. The shares were bought at an average cost of $2.09 per share, for a total transaction of $39,710.00. Following the acquisition, the director owned 99,711 shares in the company, valued at $208,395.99. The trade was a 23.54% increase in their position. The disclosure for this purchase is available in the SEC filing. 5.60% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have commented on AVD shares. Wall Street Zen downgraded American Vanguard from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of American Vanguard in a research note on Thursday, August 13th. One research analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, American Vanguard has an average rating of “Sell”.

American Vanguard Company Profile

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.