Ceiling and wall solutions company Armstrong World Industries (NYSE: AWI) will be reporting results this Tuesday before market open. Here’s what you need to know.
Armstrong World met analysts’ revenue expectations last quarter, reporting revenues of $409.9 million, up 7.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
Is Armstrong World a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Armstrong World’s revenue to grow 8.6% year on year, slowing from the 16.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Armstrong World has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Armstrong World’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 2.6%, and Apogee reported a revenue decline of 1.1%, topping estimates by 3.4%. Valmont traded down 7.3% following the results.
Read our full analysis of Valmont’s results here and Apogee’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the building products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Armstrong World’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $201.50 (compared to the current share price of $160.71).
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