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This leading global producer of ceiling systems raised the quarterly dividend payout to 25.4 cents per share from 23.1 cents. The amount will be paid on Nov 17, 2022, to shareholders of record as of Nov 3. Based on the closing price of $79.37 per share on Oct 19, 2022, the stock has a dividend yield of 1.12%.
This move highlights the company’s stable financial position and its commitment to reward shareholders regularly. AWI has been boosting shareholder value through regular dividend payments since December 2018. This marks the company’s 4th consecutive year of increasing its cash dividend.
Vic Grizzle, president and CEO of Armstrong World, stated, “Our healthy balance sheet supports a balanced pursuit of all of our capital allocation priorities and returning cash directly to shareholders remains a core priority.”
Enhancement of Shareholder Value
Armstrong World has been actively managing cash flows, returning considerable free cash to investors through share repurchases and dividends. In October 2021, the company increased its quarterly dividend to 21 cents per share, marking a 5% rise from the year-ago period’s levels.
Investors always prefer a return-generating stock. A high-dividend-yielding one is muchly coveted. It goes without saying that stockholders are always looking for companies with a track record of consistent and incremental dividend payments.
Image Source: Zacks Investment Research
Armstrong World’s shares have outperformed the Zacks Building Products - Miscellaneous industry in a year. Earnings estimates for 2022 reflect 17.9% year-over-year growth. For the third quarter, earnings are pegged at $1.49 per share, suggesting growth of 27.4% from the year-ago quarter’s figure of $1.17. The consensus estimate for net sales is pegged at $330.91 million, indicating a 13.3% increase from the prior-year quarter’s figure.
Five-Year Growth Targets Bode Well
In March, Armstrong World announced five-year compounded annual growth targets. In the long run, it expects revenue growth of 10-13%. Adjusted EBITDA is anticipated to rise 12-15%. Adjusted earnings per share (EPS) is projected in the range of 15-20%. Adjusted free cash flow is likely to be in the 15-20% range.
AWI has been benefiting from investment in new products and inorganic moves. Also, the company is focused on its digitization initiative. The company launched 35 products in 2020, reflecting a 50% increase from its normal pace of activity. The company stated that other innovative products are in the pipeline that are likely to be added to the 24/7 Defend family in the future.
Armstrong World remains focused on digitalization initiatives and new technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its contribution to growth.
Arcosa, Inc. (ACA - Free Report) , currently sporting a Zacks Rank #2 (Buy), is a manufacturer of infrastructure-related products and services, serving construction, energy and transportation markets.
ACA’s expected earnings growth rate for 2022 is 19.7%. The Zacks Consensus Estimate for current-year earnings has improved to $2.31 per share from $2.08 over the past 60 days.
Boise Cascade Company (BCC - Free Report) , presently sporting a Zacks Rank #1, makes wood products and distributes building materials in the United States as well as Canada. Boise Cascade’s Building Materials Distribution and Wood Products segments are gaining strength from strong end-product demand (particularly for EWP) as well as higher commodity product prices. It has also been increasing commodity offerings that will instill growth in the existing markets, underserved markets and across its entire national footprint.
Importantly, Boise Cascade has seen a 2.1% upward estimate revision for 2022 earnings over the past 30 days. BCC has an expected earnings growth rate of 14% for 2022.
UFP Industries, Inc. (UFPI - Free Report) , currently sporting a Zacks Rank #1, has been gaining from its diversity of markets, higher organic unit sales, solid contributions from buyouts, new product innovation and an improved pricing model. UFP Industries' industrial and construction segments are experiencing favorable growth trends and profitability, given normalized retail demand.
UFPI has seen an upward estimate revision of 0.2% and 0.4% for 2022 and 2023 earnings, respectively, over the past 60 days. This depicts analysts’ optimism over the company’s prospects. UFP Industries’ 2022 earnings are expected to grow 23.2%.
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Armstrong World (AWI) Hikes Dividend, Boosts Investors' Value
Armstrong World Industries, Inc. (AWI - Free Report) announced a hike of 10% in its quarterly cash dividend.
This leading global producer of ceiling systems raised the quarterly dividend payout to 25.4 cents per share from 23.1 cents. The amount will be paid on Nov 17, 2022, to shareholders of record as of Nov 3. Based on the closing price of $79.37 per share on Oct 19, 2022, the stock has a dividend yield of 1.12%.
This move highlights the company’s stable financial position and its commitment to reward shareholders regularly. AWI has been boosting shareholder value through regular dividend payments since December 2018. This marks the company’s 4th consecutive year of increasing its cash dividend.
Vic Grizzle, president and CEO of Armstrong World, stated, “Our healthy balance sheet supports a balanced pursuit of all of our capital allocation priorities and returning cash directly to shareholders remains a core priority.”
Enhancement of Shareholder Value
Armstrong World has been actively managing cash flows, returning considerable free cash to investors through share repurchases and dividends. In October 2021, the company increased its quarterly dividend to 21 cents per share, marking a 5% rise from the year-ago period’s levels.
Investors always prefer a return-generating stock. A high-dividend-yielding one is muchly coveted. It goes without saying that stockholders are always looking for companies with a track record of consistent and incremental dividend payments.
Image Source: Zacks Investment Research
Armstrong World’s shares have outperformed the Zacks Building Products - Miscellaneous industry in a year. Earnings estimates for 2022 reflect 17.9% year-over-year growth. For the third quarter, earnings are pegged at $1.49 per share, suggesting growth of 27.4% from the year-ago quarter’s figure of $1.17. The consensus estimate for net sales is pegged at $330.91 million, indicating a 13.3% increase from the prior-year quarter’s figure.
Five-Year Growth Targets Bode Well
In March, Armstrong World announced five-year compounded annual growth targets. In the long run, it expects revenue growth of 10-13%. Adjusted EBITDA is anticipated to rise 12-15%. Adjusted earnings per share (EPS) is projected in the range of 15-20%. Adjusted free cash flow is likely to be in the 15-20% range.
AWI has been benefiting from investment in new products and inorganic moves. Also, the company is focused on its digitization initiative. The company launched 35 products in 2020, reflecting a 50% increase from its normal pace of activity. The company stated that other innovative products are in the pipeline that are likely to be added to the 24/7 Defend family in the future.
Armstrong World remains focused on digitalization initiatives and new technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its contribution to growth.
Zacks Rank & Key Picks
Currently, Armstrong World carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arcosa, Inc. (ACA - Free Report) , currently sporting a Zacks Rank #2 (Buy), is a manufacturer of infrastructure-related products and services, serving construction, energy and transportation markets.
ACA’s expected earnings growth rate for 2022 is 19.7%. The Zacks Consensus Estimate for current-year earnings has improved to $2.31 per share from $2.08 over the past 60 days.
Boise Cascade Company (BCC - Free Report) , presently sporting a Zacks Rank #1, makes wood products and distributes building materials in the United States as well as Canada. Boise Cascade’s Building Materials Distribution and Wood Products segments are gaining strength from strong end-product demand (particularly for EWP) as well as higher commodity product prices. It has also been increasing commodity offerings that will instill growth in the existing markets, underserved markets and across its entire national footprint.
Importantly, Boise Cascade has seen a 2.1% upward estimate revision for 2022 earnings over the past 30 days. BCC has an expected earnings growth rate of 14% for 2022.
UFP Industries, Inc. (UFPI - Free Report) , currently sporting a Zacks Rank #1, has been gaining from its diversity of markets, higher organic unit sales, solid contributions from buyouts, new product innovation and an improved pricing model. UFP Industries' industrial and construction segments are experiencing favorable growth trends and profitability, given normalized retail demand.
UFPI has seen an upward estimate revision of 0.2% and 0.4% for 2022 and 2023 earnings, respectively, over the past 60 days. This depicts analysts’ optimism over the company’s prospects. UFP Industries’ 2022 earnings are expected to grow 23.2%.