Armstrong World Industries
The 10-second takeaway
For the quarter ended June 30 (Q2), Armstrong World Industries beat slightly on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share shrank. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Armstrong World Industries chalked up revenue of $706.6 million. The 11 analysts polled by S&P Capital IQ expected net sales of $696.0 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $675.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.62. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.62 for Q2 were 13% lower than the prior-year quarter's $0.71 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.50 for Q2 were 29% lower than the prior-year quarter's $0.70 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 23.3%, 260 basis points worse than the prior-year quarter. Operating margin was 7.5%, 290 basis points worse than the prior-year quarter. Net margin was 4.2%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $745.8 million. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $2.71 billion. The average EPS estimate is $2.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 51 members out of 66 rating the stock outperform, and 15 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 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 $58.75.
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