Ceiling and wall solutions company Armstrong World Industries (NYSE:AWI) will be reporting earnings this Tuesday before market hours. Here’s what to expect.
Armstrong World beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $382.7 million, up 17.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
Is Armstrong World a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Armstrong World’s revenue to grow 10.5% year on year to $403.6 million, slowing from the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.78 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Armstrong World has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
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 1%, beating analysts’ expectations by 1.7%, and Sherwin-Williams reported flat revenue, in line with consensus estimates. Valmont traded up 7.9% following the results while Sherwin-Williams’s stock price was unchanged.
Read our full analysis of Valmont’s results here and Sherwin-Williams’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 6.8% on average over the last month. Armstrong World is up 4.7% during the same time and is heading into earnings with an average analyst price target of $170.56 (compared to the current share price of $170).
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