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What: Shares of home-products maker Armstrong World Industries
So what: Second-quarter revenue fell 5% to $709.0 million, falling well below estimates of $765.4 million from Wall Street. The company also said that earnings per share were $0.71, below the $0.78 bar analysts had set. To make matters worse, management lowered full-year guidance for both earnings and revenue.
Now what: This was a nightmare for investors -- misses on earnings, revenue, and guidance. The company is still profitable, but with a 19 trailing P/E ratio and revenue falling I'm not sure that alone is enough to hold up shares. I'm bailing due to this report today and wouldn't jump back in until earnings show significant improvement.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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