American Vanguard (NYSE:AVD) Posts Quarterly Earnings Results, Misses Expectations By $0.43 EPS

American Vanguard (NYSE:AVD) released its quarterly earnings data on Monday. The basic materials company reported ($0.34) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.43), FiscalAI reports. American Vanguard had a negative net margin of 10.70% and a negative return on equity of 8.83%. The company had revenue of $116.75 million for the quarter, compared to analyst estimates of $135.00 million.

Here are the key takeaways from American Vanguard’s conference call:

• Second-quarter results weakened: Sales fell 9% year over year to $117 million, while adjusted EBITDA declined to $6.6 million from $11 million, pressured by lower international sales, higher freight costs and weaker factory absorption.
• U.S. operations continued to outperform, with first-half U.S. sales up 6% and specialty sales rising 10%; herbicides and biological solutions were areas of strength. Management said delayed cotton shipments moved into the third quarter and maintained its 2026 outlook.
• Cost-reduction initiatives are beginning to improve operating leverage: first-half gross margin expanded 100 basis points to 30%, operating expenses declined, inventories fell by $10 million year over year, and the Los Angeles plant rationalization is expected to save at least $4 million annually.
• Management reiterated its 2026 guidance of $530 million–$550 million in sales and $44 million–$48 million in adjusted EBITDA, while targeting more than $600 million of annualized revenue and double-digit EBITDA margins by the second half of 2028 through new products and efficiency improvements.
• International markets remain challenging because of adverse El Niño weather, inflation, raw-material costs and weaker demand in Brazil and Mexico. Net debt rose sequentially to approximately $225 million at quarter-end as seasonal working-capital needs increased.

American Vanguard Trading Down 1.2%

NYSE:AVD opened at $2.26 on Wednesday. The stock has a market cap of $64.72 million, a price-to-earnings ratio of -1.19 and a beta of 1.43. The company has a debt-to-equity ratio of 1.39, a quick ratio of 1.41 and a current ratio of 2.32. American Vanguard has a 1 year low of $2.05 and a 1 year high of $5.92. The business has a fifty day moving average of $2.65 and a 200-day moving average of $3.25.

Analyst Ratings Changes

Separately, Weiss Ratings cut shares of American Vanguard from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, May 18th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, American Vanguard presently has a consensus rating of “Sell”.

Insider Buying and Selling

In related news, Director Patrick E. Gottschalk purchased 25,000 shares of the company’s stock in a transaction on Tuesday, May 19th. The shares were bought at an average cost of $2.70 per share, for a total transaction of $67,500.00. Following the transaction, the director owned 191,705 shares of the company’s stock, valued at $517,603.50. This represents a 15.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders own 5.60% of the company’s stock.

Institutional Investors Weigh In On American Vanguard

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AVD. Oxford Asset Management LLP acquired a new position in American Vanguard during the fourth quarter worth about $117,000. Wells Fargo & Company MN boosted its position in shares of American Vanguard by 46.2% during the 4th quarter. Wells Fargo & Company MN now owns 28,650 shares of the basic materials company’s stock valued at $109,000 after purchasing an additional 9,055 shares in the last quarter. Ironwood Investment Management LLC grew its stake in shares of American Vanguard by 42.1% in the 4th quarter. Ironwood Investment Management LLC now owns 55,056 shares of the basic materials company’s stock worth $210,000 after purchasing an additional 16,324 shares during the last quarter. Empowered Funds LLC grew its stake in shares of American Vanguard by 86.4% in the 4th quarter. Empowered Funds LLC now owns 42,690 shares of the basic materials company’s stock worth $163,000 after purchasing an additional 19,784 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in shares of American Vanguard by 15.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 22,456 shares of the basic materials company’s stock worth $129,000 after purchasing an additional 2,921 shares in the last quarter. Institutional investors own 79.00% of the company’s stock.

American Vanguard Company Profile

American Vanguard Corporation (NYSE: AVD) is a developer, manufacturer and marketer of specialty chemical products for crop protection, turf and ornamental care, and public health pest control. Headquartered in Newport Beach, California, the company offers a portfolio of insecticides, herbicides, fungicides and rodenticides designed for use across agricultural, turf and urban pest management applications. Its research and development efforts focus on novel chemistries and formulation technologies that address emerging pest resistance and regulatory requirements.

The company’s product lines include emulsifiable concentrates, wettable powders, granular formulations, baits and liquid concentrates sold under proprietary brand names.