Analysts Have Been Trimming Their American Vanguard Corporation (NYSE:AVD) Price Target After Its Latest Report

American Vanguard Corporation (NYSE:AVD) just released its latest third-quarter report and things are not looking great. It definitely looks like a negative result overall with revenues falling 15% short of analyst estimates at US$118m. Statutory losses were US$0.92 per share, 868% bigger than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for American Vanguard

Following the latest results, American Vanguard's two analysts are now forecasting revenues of US$591.3m in 2025. This would be a satisfactory 6.8% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with American Vanguard forecast to report a statutory profit of US$0.42 per share. Before this earnings report, the analysts had been forecasting revenues of US$598.8m and earnings per share (EPS) of US$0.40 in 2025. So the consensus seems to have become somewhat more optimistic on American Vanguard's earnings potential following these results.

The average the analysts price target fell 17% to US$12.50, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.4% growth on an annualised basis. That is in line with its 5.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. It's clear that while American Vanguard's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around American Vanguard's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for American Vanguard going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for American Vanguard you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.