American Woodmark down 6% after Q3 EPS miss

• American Woodmark (AMWD -6.7%) reported Q3 net sales growth of 9.2% Y/Y to $431.95M, experiencing growth across all channels. Adj. Net income increased by 16.2% Y/Y to $25.53M.
• Q3 gross margin declined by 73 bps to 17.6%; and operating margin expanded by 55 bps to 6.6%.
• Adj. EBITDA increased by 7.9% Y/Y to $54.07M; and margin declined by 15 bps to 12.5%.
• Cash provided by operating activities YTD was $107.51M, compared to $112.21 a year ago; and FCF was $74.27M.
• Company paid down an additional $40M of term loan facility during the quarter.
• Net leverage was at 1.86 for the twelve months ended January 31, 2021.
• “Valuations are low, and there is a meaningful potential of upward revision in estimates giving the stock a significant upside,” mentions SA contributor GS Analytics, with a Very Bullish rating.
• Previously: American Woodmark EPS misses by $0.13, beats on revenue (Feb. 25)