RICHMOND, Va. (AP) — American Woodmark's profit jumped in the second quarter as the cabinet maker continues to benefit from new home construction and remodeling.
But its results missed Wall Street expectations, sending shares down more than 7 percent in midday trading Tuesday.
Like other companies with exposure to the housing market, American Woodmark Corp. is getting a lift from the housing market's ongoing recovery.
The National Association of Home Builders/Wells Fargo builder sentiment index reported last week that confidence among U.S. homebuilders remained at its highest levels in more than seven years with a reading of 54 this month. Readings above 50 indicate more builders view sales conditions as good, rather than poor.
The index has stayed above 50 now for six straight months after being below that level since May 2006. It has held steady, even as mortgage rates have come off their record lows and home sales have slowed. Those readings suggest most builders are still optimistic that the housing recovery will endure. Builders' confidence in the market for newly built homes has improved steadily since national measures of home sales and prices began to recover early last year.
The Winchester, Va., company said it earned $5.3 million, or 34 cents per share, for the period ended Oct. 31. That's up from $1.95 million, or 13 cents per share, a year ago.
Revenue rose 19 percent to $190.5 million.
Analysts polled by FactSet expected earnings of 38 cents per share on revenue of $183.8 million.
Its shares fell $2.63 to $34.41 in midday trading.
In a conference call with investors, CEO Kent Guichard said American Woodmark continues to be pleased with its progress "as the industry recovers from the great housing recession."
The company also said its board of directors has authorized a stock buyback of up to $10 million.
American Woodmark operates nine manufacturing plants in Arizona, Georgia, Indiana, Kentucky, Maryland, Tennessee, Virginia, and West Virginia. It also has nine service centers.
Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum .