Armstrong World Industries, Inc. (AWI - Free Report) reported mixed results for second-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimate, but net sales missed the same. Both metrics increased on a year-over-year basis.
The upside was backed by robust growth in operating income and adjusted EBITDA, as well as expanded margins, fueled by positive performances from both the Mineral Fiber and Architectural Specialties segments. The company remain focused on advancing digital and healthy spaces initiatives and pursuing attractive, bolt-on acquisitions.
Following the results, shares of the company rose 2.5% on Jul 25.
Inside the Headlines
Armstrong World reported adjusted earnings of $1.38 per share, which topped the Zacks Consensus Estimate of $1.31 by 5.3% and grew 7% year over year from $1.29 per share.
Acquired BOK Modern
In July 2023, the company completed the acquisition of BOK Modern, LLC for a total cash consideration of $13.8 million, with additional contingent consideration based on performance objectives through 2025. BOK Modern is a prominent California-based designer of metal architectural solutions, having generated revenues of around $12 million in 2022.
2023 Guidance Updated
The company maintains a positive outlook on its growth strategy and cash flow generation for the year, backed by solid first-half results and strong execution at the plants, operational efficiencies and cost-saving initiatives.
A modest update to the full-year 2023 outlook reflects its confidence in achieving the annual goals. AWI now anticipates net sales within $1,265-$1,305 million (slightly up from $1,260-$1,310 million expected earlier), indicating a 3-6% increase from the year-ago figure.
Adjusted EBITDA is now projected within $400-$420 million, suggesting a rise of 4-9% year over year. Earlier it expected $395-$420 million of adjusted EBITDA for 2023. AWI rose its adjusted earnings per share expectation to $4.85-$5.05 from $4.80-$5.05 estimated earlier, suggesting a growth of 2-7% from 2022.
Adjusted free cash flow is anticipated between $240 million and $250 million (versus previous anticipation of $230-$250 million), indicating a 9-13% increase from the prior year’s levels.
Zacks Rank & Recent Construction Releases
Armstrong World currently carries a Zacks Rank #3 (Hold).
NVR, Inc. (NVR - Free Report) reported second-quarter 2023 results, wherein its earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines declined on a year-over-year basis, thanks to delayed housing activities and macroeconomic woes.
NVR reported earnings of $116.54 per share, which topped the consensus mark of $100.98 by 15.4%. The reported figure, however, decreased by 6% from the prior-year quarter’s figure of $123.65 per share.
PulteGroup Inc. (PHM - Free Report) reported impressive results in second-quarter 2023. Its earnings and revenues surpassed their respective Zacks Consensus Estimates and increased year over year. The upside was mainly driven by its solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
Backed by its disciplined and balanced business model, the company witnessed solid gross closings, orders and margins in the reported quarter and posted a 12-month return on equity of 32%.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2023 (ended Jun 30, 2023) results, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate.
On a year-over-year basis, although earnings declined, revenues increased. The company highlighted that the supply of both new and existing homes at affordable price points remains limited and that the demographics supporting housing demand remain favorable. This tailwind has helped this Arlington, TX-based homebuilder witness net sales order growth of 37% year over year in the fiscal third quarter.
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Armstrong World Industries, Inc. (AWI - Free Report) reported mixed results for second-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimate, but net sales missed the same. Both metrics increased on a year-over-year basis.
The upside was backed by robust growth in operating income and adjusted EBITDA, as well as expanded margins, fueled by positive performances from both the Mineral Fiber and Architectural Specialties segments. The company remain focused on advancing digital and healthy spaces initiatives and pursuing attractive, bolt-on acquisitions.
Following the results, shares of the company rose 2.5% on Jul 25.
Inside the Headlines
Armstrong World reported adjusted earnings of $1.38 per share, which topped the Zacks Consensus Estimate of $1.31 by 5.3% and grew 7% year over year from $1.29 per share.
Acquired BOK Modern
In July 2023, the company completed the acquisition of BOK Modern, LLC for a total cash consideration of $13.8 million, with additional contingent consideration based on performance objectives through 2025. BOK Modern is a prominent California-based designer of metal architectural solutions, having generated revenues of around $12 million in 2022.
2023 Guidance Updated
The company maintains a positive outlook on its growth strategy and cash flow generation for the year, backed by solid first-half results and strong execution at the plants, operational efficiencies and cost-saving initiatives.
A modest update to the full-year 2023 outlook reflects its confidence in achieving the annual goals. AWI now anticipates net sales within $1,265-$1,305 million (slightly up from $1,260-$1,310 million expected earlier), indicating a 3-6% increase from the year-ago figure.
Adjusted EBITDA is now projected within $400-$420 million, suggesting a rise of 4-9% year over year. Earlier it expected $395-$420 million of adjusted EBITDA for 2023. AWI rose its adjusted earnings per share expectation to $4.85-$5.05 from $4.80-$5.05 estimated earlier, suggesting a growth of 2-7% from 2022.
Adjusted free cash flow is anticipated between $240 million and $250 million (versus previous anticipation of $230-$250 million), indicating a 9-13% increase from the prior year’s levels.
Zacks Rank & Recent Construction Releases
Armstrong World currently carries a Zacks Rank #3 (Hold).
NVR, Inc. (NVR - Free Report) reported second-quarter 2023 results, wherein its earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines declined on a year-over-year basis, thanks to delayed housing activities and macroeconomic woes.
NVR reported earnings of $116.54 per share, which topped the consensus mark of $100.98 by 15.4%. The reported figure, however, decreased by 6% from the prior-year quarter’s figure of $123.65 per share.
PulteGroup Inc. (PHM - Free Report) reported impressive results in second-quarter 2023. Its earnings and revenues surpassed their respective Zacks Consensus Estimates and increased year over year. The upside was mainly driven by its solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
Backed by its disciplined and balanced business model, the company witnessed solid gross closings, orders and margins in the reported quarter and posted a 12-month return on equity of 32%.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2023 (ended Jun 30, 2023) results, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate.
On a year-over-year basis, although earnings declined, revenues increased. The company highlighted that the supply of both new and existing homes at affordable price points remains limited and that the demographics supporting housing demand remain favorable. This tailwind has helped this Arlington, TX-based homebuilder witness net sales order growth of 37% year over year in the fiscal third quarter.
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Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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