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 Industries, Inc. (AWI - Free Report) reported impressive results for first-quarter 2023, wherein earnings and net sales surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. The upside was driven by double-digit sales and adjusted EBITDA growth in the Mineral Fiber segment.
Vic Grizzle, president and CEO of Armstrong, said, “The results we delivered in the first quarter of 2023, highlighted by robust Mineral Fiber segment volume growth of 9% and Mineral Fiber adjusted EBITDA margin expansion, are an important first step on the path to delivering sales and earnings growth for the full year. We remain laser-focused on our strategic initiatives to drive sustainable growth while managing our costs in the current uncertain macroeconomic environment.”
Shares of AWI fell 6.54% during the trading session on Apr 25 but grew 0.48% in after-market trading.
Earnings & Revenue Discussion
Armstrong World reported adjusted earnings of $1.12 per share, which topped the Zacks Consensus Estimate of $1.06 by 5.7% and grew 9.8% year over year from $1.02 per share.
Armstrong World Industries, Inc. Price, Consensus and EPS Surprise
Net sales of $310.2 million topped the consensus mark of $307 million by 0.9% and grew 9.8% year over year. The upside was driven by primarily higher volumes and favorable average unit value.
Operational Update
During the quarter, the company’s operating income of $70.2 million rose 11.1% from the prior-year quarter’s level of $63.2 million. Adjusted EBITDA rose 9.5% from the prior-year quarter’s figure to $96 million.
Segmental Performance
Mineral Fiber: The segment’s sales increased 12.4% on a year-over-year basis to $228.4 million. Volume increased due to a recovery of sales volumes compared to a weaker prior-year period because of inventory level reductions at certain customers, and partially due to current-year inventory level increases at home center customers. Operating income rose 10.8% from the prior-year quarter to $63.8 million. Adjusted EBITDA increased 12.9% from the prior-year quarter to $84 million.
Architectural Specialties: Net sales in the segment grew 3% year over year to $81.8 million, owing to broad-based growth across most product categories, partially offset by lower metal product sales and the timing of custom project sales. The segment reported an operating income of $7.2 million, up 10.8% from the year-ago quarter’s reported value of $6.5 million. Adjusted EBITDA declined 10% to $12 million from the prior-year quarter.
Financials
As of Mar 31, 2023, Armstrong World had cash and cash equivalents of $96 million compared with $106 million at 2022-end. Net cash provided by operations was $26.2 million in first-quarter 2023 compared with $16.7 million in the year-ago quarter.
Adjusted free cash flow was $30 million in first-quarter 2023, up from $20 million reported in the year-ago quarter. during the reported quarter, AWI repurchased 0.4 million shares of common stock for $27 million, excluding commissions and taxes. As of Mar 31, 2023, shares worth $321.8 million remained under the current authorized share repurchase program (expires on Dec 31, 2023).
2023 Guidance Maintained
For 2023, the company continues to expect weak economic conditions and challenging macroeconomic environment. Yet, benefits from the growth initiatives undertaken, ongoing productivity improvements, disciplined cost control and solid adjusted free cash flow will certainly offset these headwinds to some extent.
AWI anticipates net sales within $1,260-$1,310 million, indicating a 2-6% increase from a year ago. Adjusted EBITDA is projected within $395-$420 million, suggesting a rise of 3-9% year over year. AWI expects adjusted earnings per share in the range of $4.80-$5.05, implying growth of 1-7% from 2022. Adjusted free cash flow is anticipated between $230 and $250 million (implying a 4-13% increase from the prior year).
KB Home (KBH - Free Report) reported better-than-expected first-quarter fiscal 2023 (ended Feb 28, 2023) results, defying the challenging housing market conditions. Its earnings and revenues beat the Zacks Consensus Estimate.
KBH’s quarterly revenues were at the high end of its guided range. Both operating and gross margins performed better than expected. KBH’s book value per share grew to $44.80, up 27% from a year ago.
RPM International Inc. (RPM - Free Report) reported third-quarter fiscal 2023 (ended Feb 28, 2023) results, wherein its earnings and sales beat the Zacks Consensus Estimate. Although sales increased, earnings declined year over year.
During the quarter, RPM’s net sales benefited from reshoring and infrastructure spending.
Acuity Brands, Inc. (AYI - Free Report) reported mixed results for second-quarter fiscal 2023 (ended Feb 28, 2023), wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Earnings beat the consensus mark for the 11th consecutive quarter. Revenues missed the same for two quarters in a row, following six straight quarters of beat.
On a year-over-year basis, AYI’s earnings and revenues rose as sales in both the lighting and spaces businesses grew. Adjusted operating profit and adjusted earnings per share increased as well.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Armstrong World's (AWI) Q1 Earnings & Revenues Top, Rise Y/Y
Armstrong World Industries, Inc. (AWI - Free Report) reported impressive results for first-quarter 2023, wherein earnings and net sales surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. The upside was driven by double-digit sales and adjusted EBITDA growth in the Mineral Fiber segment.
Vic Grizzle, president and CEO of Armstrong, said, “The results we delivered in the first quarter of 2023, highlighted by robust Mineral Fiber segment volume growth of 9% and Mineral Fiber adjusted EBITDA margin expansion, are an important first step on the path to delivering sales and earnings growth for the full year. We remain laser-focused on our strategic initiatives to drive sustainable growth while managing our costs in the current uncertain macroeconomic environment.”
Shares of AWI fell 6.54% during the trading session on Apr 25 but grew 0.48% in after-market trading.
Earnings & Revenue Discussion
Armstrong World reported adjusted earnings of $1.12 per share, which topped the Zacks Consensus Estimate of $1.06 by 5.7% and grew 9.8% year over year from $1.02 per share.
Armstrong World Industries, Inc. Price, Consensus and EPS Surprise
Armstrong World Industries, Inc. price-consensus-eps-surprise-chart | Armstrong World Industries, Inc. Quote
Net sales of $310.2 million topped the consensus mark of $307 million by 0.9% and grew 9.8% year over year. The upside was driven by primarily higher volumes and favorable average unit value.
Operational Update
During the quarter, the company’s operating income of $70.2 million rose 11.1% from the prior-year quarter’s level of $63.2 million. Adjusted EBITDA rose 9.5% from the prior-year quarter’s figure to $96 million.
Segmental Performance
Mineral Fiber: The segment’s sales increased 12.4% on a year-over-year basis to $228.4 million. Volume increased due to a recovery of sales volumes compared to a weaker prior-year period because of inventory level reductions at certain customers, and partially due to current-year inventory level increases at home center customers. Operating income rose 10.8% from the prior-year quarter to $63.8 million. Adjusted EBITDA increased 12.9% from the prior-year quarter to $84 million.
Architectural Specialties: Net sales in the segment grew 3% year over year to $81.8 million, owing to broad-based growth across most product categories, partially offset by lower metal product sales and the timing of custom project sales. The segment reported an operating income of $7.2 million, up 10.8% from the year-ago quarter’s reported value of $6.5 million. Adjusted EBITDA declined 10% to $12 million from the prior-year quarter.
Financials
As of Mar 31, 2023, Armstrong World had cash and cash equivalents of $96 million compared with $106 million at 2022-end. Net cash provided by operations was $26.2 million in first-quarter 2023 compared with $16.7 million in the year-ago quarter.
Adjusted free cash flow was $30 million in first-quarter 2023, up from $20 million reported in the year-ago quarter. during the reported quarter, AWI repurchased 0.4 million shares of common stock for $27 million, excluding commissions and taxes. As of Mar 31, 2023, shares worth $321.8 million remained under the current authorized share repurchase program (expires on Dec 31, 2023).
2023 Guidance Maintained
For 2023, the company continues to expect weak economic conditions and challenging macroeconomic environment. Yet, benefits from the growth initiatives undertaken, ongoing productivity improvements, disciplined cost control and solid adjusted free cash flow will certainly offset these headwinds to some extent.
AWI anticipates net sales within $1,260-$1,310 million, indicating a 2-6% increase from a year ago. Adjusted EBITDA is projected within $395-$420 million, suggesting a rise of 3-9% year over year. AWI expects adjusted earnings per share in the range of $4.80-$5.05, implying growth of 1-7% from 2022. Adjusted free cash flow is anticipated between $230 and $250 million (implying a 4-13% increase from the prior year).
Zacks Rank
AWI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Few Recent Construction Releases
KB Home (KBH - Free Report) reported better-than-expected first-quarter fiscal 2023 (ended Feb 28, 2023) results, defying the challenging housing market conditions. Its earnings and revenues beat the Zacks Consensus Estimate.
KBH’s quarterly revenues were at the high end of its guided range. Both operating and gross margins performed better than expected. KBH’s book value per share grew to $44.80, up 27% from a year ago.
RPM International Inc. (RPM - Free Report) reported third-quarter fiscal 2023 (ended Feb 28, 2023) results, wherein its earnings and sales beat the Zacks Consensus Estimate. Although sales increased, earnings declined year over year.
During the quarter, RPM’s net sales benefited from reshoring and infrastructure spending.
Acuity Brands, Inc. (AYI - Free Report) reported mixed results for second-quarter fiscal 2023 (ended Feb 28, 2023), wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Earnings beat the consensus mark for the 11th consecutive quarter. Revenues missed the same for two quarters in a row, following six straight quarters of beat.
On a year-over-year basis, AYI’s earnings and revenues rose as sales in both the lighting and spaces businesses grew. Adjusted operating profit and adjusted earnings per share increased as well.