American Woodmark Corp. (AMWD), a manufacturer of kitchen cabinets, announced Thursday a swing to profit, helped by lower cost of sales and marketing expense.
American Woodmark posted a third-quarter net income of $23,000 or $0.00 per share, compared with a net loss of $2.02 million, or $0.14 per share, reported in the previous year.
On an average, five analysts polled by Thomson Reuters expected the company to report loss of $0.16 per share in the third quarter. Analysts' estimate typically excludes special items.
Net sales for the quarter declined 1% to $131.15 million from $132.84 million in the year ago quarter. Four analysts expected the company to report revenue of $112.12 million in the third quarter.
For the three-month period, cost of sales and distribution declined to $110.77 million from $115.13 million last year, while sales and marketing expense declined to $14.76 million from $16.55 million in the same quarter last year.
The company stated that operating expenses during the quarter continued to be lower than in the prior fiscal year, driven primarily by reductions in headcount and other volume-related costs.
Gross profit for the third quarter was 15.5% of net sales, compared to 13.3% of net sales in the third quarter a year ago.
For the nine-month period ended January 31, the company reported a net loss of $0.30 million or $0.02 per share, compared to a net income of $4.24 million or $0.29 per share in the comparable period last year. Net sales declined 12% to $405.25 million from $459.12 million.
AMWD is currently trading at $16.08, up $1.50 or 10.29%, on the Nasdaq.
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