11:03 AM EDT, 08/27/2024 (MT Newswires) -- Shares of American Woodmark ( AMWD ) plunged intraday Tuesday after the cabinet maker's fiscal first-quarter results dropped year over year while the company lowered its full-year guidance amid weakness in the home remodeling market.

Revenue slid to $459.1 million for the three months ended July 31 from $498.3 million a year ago while adjusted earnings per fell to $1.89 from $2.78. Four analysts surveyed by Capital IQ were modeling for sales and normalized EPS of $475.4 million and $2.37, respectively.

Shares of American Woodmark ( AMWD ) tumbled 10% in Tuesday trade.

"Our team delivered net sales growth in the new construction market, but this was more than offset by weaker than projected demand in the remodel market," Chief Executive Scott Culbreth said in a statement. "Softer demand in the remodel market is expected to continue and we have seen a recent slowdown in new construction single family starts."

For fiscal 2025, the company is now guiding for sales to decline in the low single-digit range from fiscal 2024's $1.85 billion, which were down nearly 11% on a year-over-year basis. Previously, American Woodmark ( AMWD ) guided for sales to increase by a low-single digit this fiscal year. Four analysts in the Capital IQ survey are looking for revenue of $1.88 billion.

The company lowered its adjusted earnings before interest, taxes, depreciation and amortization outlook between $225 million and $245 million from its prior forecast of $235 million to $255 million.

"Our home center customers have noted higher interest rates and macroeconomic pressures leading to weaker spending on projects," Culbreth told analysts on a conference call, according to a Capital IQ transcript. "This has been more significant for higher-priced discretionary projects like kitchen and bath."

American Woodmark ( AMWD ) is not experiencing a loss of share and as interest rates decline, existing home sales and home projects are expected to increase, according to Culbreth. This should serve as a tailwind in calendar-year 2025.

Price: 89.57, Change: -10.29, Percent Change: -10.30