AVD Plummets 29%

$51 Million Loss for Newport Beach Provider of Agricultural Products

Quarterly Earnings Call Reveals Challenges and Resilience

NEWPORT BEACH, Calif. - American Vanguard Corp (AVD), a provider of agricultural products, reported a steep decline in its second-quarter earnings, sending its stock plummeting 29% in after-hours trading on Wednesday.

According to the company's earnings call, AVD posted a net loss of $51 million, or $0.17 per share, for the quarter ended June 30, 2023. This represents a significant drop from the same period last year, when AVD reported net income of $31 million, or $0.11 per share.

AVD attributed the loss to several challenges, including adverse market conditions and increased competition. The company also noted that it faced supply chain disruptions and higher input costs, which further impacted its profitability.

Despite the challenges, AVD remains optimistic about its future prospects. The company highlighted its resilient business model and its commitment to innovation. AVD also noted its strong balance sheet and its ability to generate cash flow.

Analysts remain cautious about AVD's outlook, citing the ongoing headwinds in the agricultural sector. However, some investors believe that the company's long-term growth potential is still intact.