Ceiling and wall solutions company Armstrong World Industries (NYSE: AWI) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
Armstrong World beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $424.6 million, up 16.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA 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, analysts are expecting Armstrong World’s revenue to grow 9.1% year on year to $421.7 million, slowing from the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Armstrong World has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
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 2.5%, beating analysts’ expectations by 1.5%, and Apogee reported revenues up 4.6%, topping estimates by 2.1%. Valmont traded down 1.8% following the results while Apogee was also down 4.5%.
Read our full analysis of Valmont’s results here and Apogee’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.7% on average over the last month. Armstrong World is up 5% during the same time and is heading into earnings with an average analyst price target of $200.89 (compared to the current share price of $203.32).
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