We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Armstrong World (AWI) Q3 Earnings & Sales Miss, View Down
Read MoreHide Full Article
Armstrong World Industries, Inc. (AWI - Free Report) reported lower-than-expected results for third-quarter 2022. Earnings and sales in the quarter missed the respective Zacks Consensus Estimate but increased year over year.
Shares of the company lost 3.1% on Oct 25.
Chris Calzaretta, CFO of Armstrong, said, “While we saw strong Architectural Specialties segment sales and earnings growth in the third quarter and sequential improvement in Mineral Fiber’s price-over-inflation realization, we expect Mineral Fiber volumes to remain challenged into the fourth quarter.”
He further added, “Due to third quarter results and overall increased economic uncertainty, we are lowering our full-year 2022 financial outlook. Looking ahead, we will continue to diligently control our costs and make necessary adjustments while still supporting our long-term growth strategy.”
Armstrong World Industries, Inc. Price, Consensus and EPS Surprise
Armstrong World reported adjusted earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.47 by 7.5%. The bottom line rose 16.2% from $1.17 per share reported in the year-ago quarter.
Net sales of $325 million missed the consensus mark of $330 million by 1.7% but increased 11.2% year over year. The upside was led by higher volumes contributing $17 million and favorable Average Unit Value ("AUV") contributing $16 million.
Segmental Performance
Mineral Fiber segment’s sales increased 9% on a year-over-year basis to $233.7 million. It is mainly attributable to a favorable AUV and sales volumes contributing $16 million and $3 million, respectively.
Operating income improved 3.4% from the prior-year quarter’s levels to $70.8 million, thanks to a favorable AUV margin, a decrease in incentive compensation expense and higher sales volumes, partly offset by an increase in manufacturing costs, given higher raw material and energy inflation and an ERC benefit recorded in the prior-year period. Adjusted EBITDA also grew 3.1% from the prior-year quarter’s levels to $89 million.
Net sales in the Architectural Specialties segment rose 17.5% year over year to $91.3 million, owing to increased custom project sales and benefits from recent acquisitions.
The segment reported an operating income of $3.4 million, down 32% from $5 million in the prior year. Adjusted EBITDA came in at $16 million, up 19.7% from the prior-year quarter’s levels.
Operational Update
During the quarter, the company’s adjusted operating income of $83 million rose 9.2% from the prior-year quarter’s levels. Adjusted EBITDA also rose 6.1% from the prior-year quarter’s figure to $105 million.
Financials
As of Sep 30, 2022, Armstrong World had cash and cash equivalents of $86.8 million compared with $98.1 million at the 2021-end. The net cash provided by operations was $119.2 million during the first nine months of 2022 compared with $137.9 million in the prior-year period.
In the third quarter, the company’s free cash flow (adjusted basis) came in at $66 million, up from $58 million in the year-ago period.
2022 Guidance Updated
AWI anticipates net sales of $1,220-$1,235 million compared with $1,225-$1,245 million expected earlier. This reflects 10-12% growth versus an 11-13% increase expected earlier from a year ago. The company lowered its adjusted EBITDA projection to $385-$395 million versus $410-$420 million expected earlier.
AWI expects adjusted earnings per share in the range of $4.75-$4.85 versus $4.36-$5.10 projected earlier. Adjusted free cash flow is anticipated in the range of $210-220 million versus $215-$235 million of prior expectation.
RPM International Inc. (RPM - Free Report) reported impressive results in first-quarter fiscal 2023 (ended Aug 31, 2022), with earnings and sales surpassing their respective Zacks Consensus Estimate and increasing on a year-over-year basis.
The upside was driven by the continued implementation of MAP operational improvement initiatives, double-digit sales growth across the segments, strong pricing offset supply-chain woes, cost inflation, macroeconomic challenges and foreign exchange headwinds.
Acuity Brands, Inc. (AYI - Free Report) reported solid fourth-quarter fiscal 2022 results. The top and bottom lines surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
The upside was backed by strong demand across the end markets, along with price increases and product and productivity improvement.
Watsco, Inc. (WSO - Free Report) reported third-quarter 2022 results, wherein the company’s earnings missed the Zacks Consensus Estimate, but sales beat the same.
Nonetheless, WSO achieved higher sales and profitability, reflecting normalized residential HVAC equipment volumes, effective price realization, a continued shift toward higher-efficiency HVAC equipment and expansion in sales of other higher-margin HVAC products.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Armstrong World (AWI) Q3 Earnings & Sales Miss, View Down
Armstrong World Industries, Inc. (AWI - Free Report) reported lower-than-expected results for third-quarter 2022. Earnings and sales in the quarter missed the respective Zacks Consensus Estimate but increased year over year.
Shares of the company lost 3.1% on Oct 25.
Chris Calzaretta, CFO of Armstrong, said, “While we saw strong Architectural Specialties segment sales and earnings growth in the third quarter and sequential improvement in Mineral Fiber’s price-over-inflation realization, we expect Mineral Fiber volumes to remain challenged into the fourth quarter.”
He further added, “Due to third quarter results and overall increased economic uncertainty, we are lowering our full-year 2022 financial outlook. Looking ahead, we will continue to diligently control our costs and make necessary adjustments while still supporting our long-term growth strategy.”
Armstrong World Industries, Inc. Price, Consensus and EPS Surprise
Armstrong World Industries, Inc. price-consensus-eps-surprise-chart | Armstrong World Industries, Inc. Quote
Earnings & Revenue Discussion
Armstrong World reported adjusted earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.47 by 7.5%. The bottom line rose 16.2% from $1.17 per share reported in the year-ago quarter.
Net sales of $325 million missed the consensus mark of $330 million by 1.7% but increased 11.2% year over year. The upside was led by higher volumes contributing $17 million and favorable Average Unit Value ("AUV") contributing $16 million.
Segmental Performance
Mineral Fiber segment’s sales increased 9% on a year-over-year basis to $233.7 million. It is mainly attributable to a favorable AUV and sales volumes contributing $16 million and $3 million, respectively.
Operating income improved 3.4% from the prior-year quarter’s levels to $70.8 million, thanks to a favorable AUV margin, a decrease in incentive compensation expense and higher sales volumes, partly offset by an increase in manufacturing costs, given higher raw material and energy inflation and an ERC benefit recorded in the prior-year period. Adjusted EBITDA also grew 3.1% from the prior-year quarter’s levels to $89 million.
Net sales in the Architectural Specialties segment rose 17.5% year over year to $91.3 million, owing to increased custom project sales and benefits from recent acquisitions.
The segment reported an operating income of $3.4 million, down 32% from $5 million in the prior year. Adjusted EBITDA came in at $16 million, up 19.7% from the prior-year quarter’s levels.
Operational Update
During the quarter, the company’s adjusted operating income of $83 million rose 9.2% from the prior-year quarter’s levels. Adjusted EBITDA also rose 6.1% from the prior-year quarter’s figure to $105 million.
Financials
As of Sep 30, 2022, Armstrong World had cash and cash equivalents of $86.8 million compared with $98.1 million at the 2021-end. The net cash provided by operations was $119.2 million during the first nine months of 2022 compared with $137.9 million in the prior-year period.
In the third quarter, the company’s free cash flow (adjusted basis) came in at $66 million, up from $58 million in the year-ago period.
2022 Guidance Updated
AWI anticipates net sales of $1,220-$1,235 million compared with $1,225-$1,245 million expected earlier. This reflects 10-12% growth versus an 11-13% increase expected earlier from a year ago. The company lowered its adjusted EBITDA projection to $385-$395 million versus $410-$420 million expected earlier.
AWI expects adjusted earnings per share in the range of $4.75-$4.85 versus $4.36-$5.10 projected earlier. Adjusted free cash flow is anticipated in the range of $210-220 million versus $215-$235 million of prior expectation.
Zacks Rank & Some Recent Construction Releases
Armstrong World currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RPM International Inc. (RPM - Free Report) reported impressive results in first-quarter fiscal 2023 (ended Aug 31, 2022), with earnings and sales surpassing their respective Zacks Consensus Estimate and increasing on a year-over-year basis.
The upside was driven by the continued implementation of MAP operational improvement initiatives, double-digit sales growth across the segments, strong pricing offset supply-chain woes, cost inflation, macroeconomic challenges and foreign exchange headwinds.
Acuity Brands, Inc. (AYI - Free Report) reported solid fourth-quarter fiscal 2022 results. The top and bottom lines surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
The upside was backed by strong demand across the end markets, along with price increases and product and productivity improvement.
Watsco, Inc. (WSO - Free Report) reported third-quarter 2022 results, wherein the company’s earnings missed the Zacks Consensus Estimate, but sales beat the same.
Nonetheless, WSO achieved higher sales and profitability, reflecting normalized residential HVAC equipment volumes, effective price realization, a continued shift toward higher-efficiency HVAC equipment and expansion in sales of other higher-margin HVAC products.