Armstrong World Industries
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Armstrong World Industries missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.
Margins grew across the board.
Armstrong World Industries booked revenue of $694.7 million. The nine analysts polled by S&P Capital IQ expected a top line of $738.9 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $773.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.97. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.90 per share. GAAP EPS of $1.05 for Q3 were 18% higher than the prior-year quarter's $0.89 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.9%, 140 basis points better than the prior-year quarter. Operating margin was 13.4%, 280 basis points better than the prior-year quarter. Net margin was 9.1%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $640.4 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.75 billion. The average EPS estimate is $2.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 52 members out of 66 rating the stock outperform, and 14 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Armstrong World Industries a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Armstrong World Industries is hold, with an average price target of $52.17.
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