According to Zacks, “Armstrong World reaffirmed its full-year 2016 adjusted EBITDA guidance led by its focus on cost reduction actions and solid performance in the Americas. Moreover, improvement in AUV, innovation in product pipeline and customer relationships and share buybacks will aid growth. These are well reflected in the company’s positive record of earnings surprises in recent quarters. However, Armstrong World lowered 2016 sales outlook to the $1.23–$1.28 billion range due to softness in international markets. Uncertainty created by the recent Brexit decision will also affect business investments and delay project funding. Further, sluggish end markets, particularly the emerging markets impacted by lower commodity prices, will hurt earnings.”
A number of other research firms have also recently commented on AWI. KeyCorp upgraded Armstrong World Industries from a sector weight rating to an overweight rating and set a $50.00 price target for the company in a research note on Friday, August 5th. RBC Capital Markets reissued a sector perform rating and issued a $47.00 price objective (up from $45.00) on shares of Armstrong World Industries in a report on Monday, August 1st. Royal Bank Of Canada increased their price objective on Armstrong World Industries from $45.00 to $47.00 and gave the company a sector perform rating in a report on Monday, August 1st. Bank of America Corp. started coverage on Armstrong World Industries in a report on Friday, September 23rd. They issued an underperform rating and a $38.00 price objective on the stock. Finally, Goldman Sachs Group Inc. lowered Armstrong World Industries from a neutral rating to a sell rating and cut their price objective for the company from $38.00 to $34.00 in a report on Monday, July 11th. Three research analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company’s stock. The company has an average rating of Hold and a consensus price target of $46.17.
Armstrong World Industries (NYSE:AWI) opened at 41.32 on Tuesday. Armstrong World Industries has a 12-month low of $35.92 and a 12-month high of $52.33. The stock has a market capitalization of $2.29 billion, a PE ratio of 92.03 and a beta of 1.50. The company has a 50-day moving average price of $42.72 and a 200-day moving average price of $41.75.
Armstrong World Industries (NYSE:AWI) last released its quarterly earnings results on Friday, July 29th. The company reported $0.56 EPS for the quarter, beating analysts’ consensus estimates of $0.51 by $0.05. Armstrong World Industries had a return on equity of 18.58% and a net margin of 1.18%. The company earned $314.30 million during the quarter, compared to analysts’ expectations of $311.65 million. During the same period last year, the business posted $0.53 earnings per share. The firm’s revenue was down 50.3% compared to the same quarter last year. Analysts expect that Armstrong World Industries will post $2.28 earnings per share for the current fiscal year.
In other Armstrong World Industries news, VP Stephen F. Mcnamara sold 2,274 shares of the firm’s stock in a transaction that occurred on Monday, August 15th. The stock was sold at an average price of $45.00, for a total value of $102,330.00. Following the sale, the vice president now directly owns 5,242 shares of the company’s stock, valued at $235,890. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.60% of the stock is owned by company insiders.
A number of hedge funds have recently modified their holdings of AWI. Iridian Asset Management LLC CT acquired a new stake in shares of Armstrong World Industries during the second quarter valued at approximately $152,520,000. Vanguard Group Inc. raised its stake in shares of Armstrong World Industries by 3.2% in the second quarter. Vanguard Group Inc. now owns 3,063,213 shares of the company’s stock valued at $119,925,000 after buying an additional 94,998 shares during the last quarter. Principal Financial Group Inc. raised its stake in shares of Armstrong World Industries by 13.9% in the second quarter. Principal Financial Group Inc. now owns 1,652,514 shares of the company’s stock valued at $64,696,000 after buying an additional 202,064 shares during the last quarter. Fiduciary Management Inc. WI raised its stake in shares of Armstrong World Industries by 15.1% in the second quarter. Fiduciary Management Inc. WI now owns 1,408,225 shares of the company’s stock valued at $55,132,000 after buying an additional 184,725 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA raised its stake in shares of Armstrong World Industries by 11.4% in the second quarter. Massachusetts Financial Services Co. MA now owns 1,389,051 shares of the company’s stock valued at $54,381,000 after buying an additional 142,411 shares during the last quarter. 99.90% of the stock is currently owned by institutional investors.
About Armstrong World Industries
Armstrong World Industries, Inc is a producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings. The Company operates in four segments: Building Products, which produces suspended mineral fiber, soft fiber and metal ceiling systems for use in commercial, institutional and residential settings; Resilient Flooring, which designs, manufactures, sources and sells a range of floor coverings primarily for homes and commercial and institutional buildings; Wood Flooring segment, which designs, manufactures, sources and sells hardwood flooring products for use in new residential construction and renovation, with some commercial applications in stores, restaurants and high-end offices, and Unallocated Corporate.
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