Ceiling and wall solutions company Armstrong World Industries (NYSE: AWI) will be reporting results this Tuesday morning. Here’s what you need to know.
Armstrong World beat analysts’ revenue expectations last quarter, reporting revenues of $425.2 million, up 10% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and a miss of analysts’ EBITDA estimates.
Is Armstrong World a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Armstrong World’s revenue to grow 8.9% year on year, slowing from the 17.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Armstrong World has a history of exceeding Wall Street’s expectations.
Looking at Armstrong World’s peers in the building materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Carlisle posted flat year-on-year revenue, beating analysts’ expectations by 1.4%, and Valmont reported flat revenue, falling short of estimates by 0.7%. Carlisle traded up 11.1% following the results while Valmont was down 4.3%.
Read our full analysis of Carlisle’s results here and Valmont’s results here.
There has been positive sentiment among investors in the building materials segment, with share prices up 7.1% on average over the last month. Armstrong World is up 6.2% during the same time and is heading into earnings with an average analyst price target of $211.10 (compared to the current share price of $198.91).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
