Armstrong World Industries
The 10-second takeaway
For the quarter ended March 31 (Q1), Armstrong World Industries missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Armstrong World Industries reported revenue of $622.3 million. The nine analysts polled by S&P Capital IQ expected revenue of $633.4 million on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $668.0 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 $0.22. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. Non-GAAP EPS of $0.22 for Q1 were 53% lower than the prior-year quarter's $0.47 per share. GAAP EPS of $0.05 for Q1 were 84% lower than the prior-year quarter's $0.31 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 23.2%, 70 basis points worse than the prior-year quarter. Operating margin was 5.1%, 140 basis points worse than the prior-year quarter. Net margin was 0.5%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $692.7 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $2.70 billion. The average EPS estimate is $2.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 52 members out of 67 rating the stock outperform, and 15 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 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 $59.25.
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