Why American Vanguard's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty chemical maker American Vanguard (NYSE: AVD  ) jumped 10% today after the company released earnings.

So what: First-quarter revenue jumped 39% to $121.5 million and adjusted earnings per share nearly doubled to $0.59. Analysts only expected $115.4 million in revenue and earnings of $0.46 per share so the company easily beat on both the top and bottom line.  

Now what: Management said demand for granular soil insecticides and Impact brand herbicide drove the quarter's revenue growth. Clearly the company is hitting on all cylinders and it has beaten estimates the past five quarters, so analysts still don't have it figured out. The stock only trades at 14 times forward estimates and I think that provides a great value for investors even after today's pop.

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