Ceiling and wall solutions company Armstrong World Industries (NYSE: AWI) will be announcing earnings results this Tuesday before market open. Here’s what to expect.
Armstrong World beat analysts’ revenue expectations last quarter, reporting revenues of $472 million, up 11.2% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and full-year revenue guidance slightly topping analysts’ expectations.
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 11.2% year on year, improving from the 10% 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 Q3 results, giving us a hint as to what we can expect. Valmont delivered year-on-year revenue growth of 5.5%, missing analysts’ expectations by 1.3%, and Apogee reported revenues up 9.2%, topping estimates by 11.3%. Valmont’s stock price was unchanged after the resultswhile Apogee was up 15.3%.
Read our full analysis of Valmont’s results here and Apogee’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the building products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Armstrong World is up 2% during the same time and is heading into earnings with an average analyst price target of $207.64 (compared to the current share price of $168.03).
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