American Woodmark Corp. down on lower Q2 profit, guidance cut
Shares of American Woodmark Corp. (Nasdaq: AMWD) are sagging following news before the opening bell that the maker of kitchen cabinets lowered its fiscal year 2008 guidance and posted a decline in first quarter profit, missing analysts’ expectations.
Net income for the three months ended July 31 was $5.1 million, or $0.34 per share, well below the $0.46 per share anticipated by four analysts surveyed by Thomson Financial. The Winchester, Va.-based company had a profit of $0.82 per share during the first quarter of fiscal 2007.
Revenues also came in below Wall Street’s projections, dropping 25% to $166.06 million, while analysts were looking for revenues of $175.76 million. Revenues were $221.41 million a year earlier.
Looking ahead, American Woodmark said that tighter credit conditions and a slowdown in remodeling and new construction is leading it to reduce its fiscal 2008 earnings and revenue expectations.
The company now expects sales to decline between 12% and 16% to between $669.62 million and $639.18 million, compared with the previous guidance of sales between $677.23 million and $707.66 million.
Earnings are projected between $1.40 per share and $1.70 per share, compared with the previous guidance of $1.50 per share to $1.80 per share.
In fiscal 2007 American Woodmark booked a net income of $2.04 per share on sales of $760.93 million.
Analysts were forecasting a profit of $1.65 per share on revenues of $682.25 for fiscal 2008.
At 1:03 p.m. ET the stock had shed $0.94, or 3%, to $27.67.
