American Vanguard (NYSE:AVD) stock is taking a hit as the specialty chemicals company reveals its earnings for the second quarter of 2024.
The company reported diluted earnings per share of -9 cents, missing Wall Street’s expectation of 12 cents per share and worse than the -4 cents per share from the previous year. Revenue for Q2 came in at $128.21 million, falling short of analysts’ estimate of $133.6 million and down 3.5% from the previous year.
Interim CEO Timothy Donnelly attributed the reduced profitability to non-recurring charges, including severance compensation for the former CEO and other one-time costs related to business transformation activities. The company expressed dissatisfaction with these results and is focused on making changes quickly.
Outlook Cut Leads to Further Decline in AVD Stock
American Vanguard also revised its outlook for 2024, expecting revenue to range between $565 million and $580 million, below Wall Street’s estimate of $596.75 million. As a result, AVD stock is down 28.1% on Friday morning.
For more stock market news, investors can also follow the latest updates on AN2 Therapeutics (NASDAQ:ANTX), Nauticus Robotics (NASDAQ:KITT), and Iteris (NASDAQ:ITI) stocks today.
Analysis:
American Vanguard’s disappointing earnings report and revised outlook have led to a significant drop in its stock price. Investors should take note of the company’s challenges and the impact on its financial performance. It is crucial to stay informed about such developments in the stock market to make informed decisions about investments. As always, it’s important to consult with a financial advisor before making any investment decisions based on this information.