American Woodmark misses profit expectations, as sales growth lagged rise in cost of sales

MW American Woodmark misses profit expectations, as sales growth lagged rise in cost of sales

American Woodmark Corp. $(AMWD)$ reported Tuesday fiscal first-quarter profit and sales that missed expectations, as "significant pricing actions" weren't implemented in time to offset increasing inflationary pressures. The cabinet maker's stock was still inactive in premarket trading. Net income fell to $3.0 million, or 18 cents a share, from $16.1 million, or 94 cents a share, in the year ago period. Excluding nonrecurring items, adjusted earnings per share fell to 70 cents from $1.63, below the FactSet consensus of $1.48. Sales dropped 13.5% to $442.6 million, missing the FactSet consensus of $461.3 million. Cost of sales increased 25.3% to $389.1 million, lowering gross margin to 12.1% from 20.4%. "Although we have and are also in the process of implementing significant pricing actions due to the increasing inflationary pressures we are facing, we only realized approximately $3 million of impact in the first quarter of fiscal 2022," said Chief Executive Scott Culbreth. "Assuming our current sales level, we expect the impact of confirmed pricing actions to increase in the second half of fiscal 2022 to over $25 million per quarter." The stock has shed 14.3% year to date, while the S&P 500 has gained 20.6%.