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

American Vanguard (NYSE:AVD) posted its earnings results on Monday. The basic materials company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.43), FiscalAI reports. American Vanguard had a negative return on equity of 4.13% and a negative net margin of 8.71%.The firm had revenue of $116.75 million for the quarter, compared to analysts’ expectations 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 Price Performance

NYSE:AVD traded down $0.10 during trading hours on Monday, reaching $2.31. 225,954 shares of the company were exchanged, compared to its average volume of 313,594. The company has a current ratio of 2.32, a quick ratio of 1.41 and a debt-to-equity ratio of 1.39. The stock’s 50-day moving average is $2.67 and its 200-day moving average is $3.29. The firm has a market cap of $66.08 million, a PE ratio of -1.45 and a beta of 1.43. American Vanguard has a twelve month low of $2.05 and a twelve month high of $5.92.

Insider Transactions at American Vanguard

In related news, Director Patrick E. Gottschalk bought 25,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were acquired at an average price of $2.70 per share, for a total transaction of $67,500.00. Following the completion of the transaction, the director directly owned 191,705 shares in the company, valued at $517,603.50. This trade represents a 15.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 5.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Russell Investments Group Ltd. raised its stake in American Vanguard by 1,397.5% in the 4th quarter. Russell Investments Group Ltd. now owns 336,277 shares of the basic materials company’s stock valued at $1,285,000 after purchasing an additional 313,821 shares during the last quarter. Curi Capital LLC boosted its stake in American Vanguard by 1,285.5% during the 2nd quarter. Curi Capital LLC now owns 289,573 shares of the basic materials company’s stock worth $1,135,000 after purchasing an additional 268,673 shares during the last quarter. Federated Hermes Inc. grew its holdings in shares of American Vanguard by 371.1% during the second quarter. Federated Hermes Inc. now owns 303,179 shares of the basic materials company’s stock worth $1,188,000 after buying an additional 238,822 shares in the last quarter. AQR Capital Management LLC boosted its position in American Vanguard by 117.8% during the first quarter. AQR Capital Management LLC now owns 436,687 shares of the basic materials company’s stock worth $1,921,000 after acquiring an additional 236,212 shares during the last quarter. Finally, American Century Companies Inc. boosted its position in American Vanguard by 59.7% during the second quarter. American Century Companies Inc. now owns 248,162 shares of the basic materials company’s stock worth $973,000 after acquiring an additional 92,807 shares during the last quarter. Institutional investors and hedge funds own 79.00% of the company’s stock.

Analyst Upgrades and Downgrades

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

About American Vanguard

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.