Armstrong World Industries
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Armstrong World Industries met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped.
Margins grew across the board.
Armstrong World Industries reported revenue of $612.8 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $609.5 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $652.1 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 $0.34. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.34 for Q4 were 113% higher than the prior-year quarter's $0.16 per share. GAAP EPS of $0.14 for Q4 were 6.7% lower than the prior-year quarter's $0.15 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 22.1%, 40 basis points better than the prior-year quarter. Operating margin was 4.9%, 120 basis points better than the prior-year quarter. Net margin was 1.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $646.3 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $2.71 billion. The average EPS estimate is $2.88.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 50 members out of 65 rating the stock outperform, and 15 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Armstrong World Industries a green thumbs-up, and one 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 $55.40.
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