Armstrong World Industries Exceeds Earnings Expectations, Analysts Raise Price Targets
Armstrong World Industries (AWI) delivered a strong performance in the third quarter, surpassing analysts’ expectations for earnings. The company reported earnings of $1.81 per share, exceeding the consensus estimate of $1.75 per share. While sales slightly missed estimates, coming in at $386.60 million compared to the anticipated $386.69 million, AWI remains bullish about its future prospects.
“With another quarter of record-setting sales and strong earnings growth, we continue to demonstrate our ability to deliver growth despite muted market conditions through operational execution and our investments in strategic acquisitions, innovation, and digital initiatives,” said Vic Grizzle, President and CEO of Armstrong World Industries. “As market demand continues to stabilize, we are well positioned to deliver full year double-digit top and bottom-line growth with industry-leading margin performance through strong Mineral Fiber Average Unit Value improvement, market-driven innovation, operational excellence, and Architectural Specialties growth.”
Reflecting this positive outlook, Armstrong World raised its FY24 adjusted earnings guidance from $6.00-$6.15 to $6.15-$6.25 per share. The company’s strong performance and optimistic outlook were well-received by analysts, leading to adjustments in price targets.
Following the earnings announcement, UBS analyst John Lovallo maintained Armstrong World Indus with a Neutral rating and raised the price target from $136 to $144. Evercore ISI Group analyst Stephen Kim also maintained the stock with an In-Line rating but increased the price target from $127 to $140. Truist Securities analyst Keith Hughes remained positive, maintaining a Buy rating and raising the price target from $148 to $162. Loop Capital analyst Garik Shmois maintained the stock with a Hold rating and raised the price target from $135 to $145.
The positive sentiment from analysts reflects confidence in Armstrong World’s ability to navigate the current market conditions and deliver on its growth strategy. Investors will be watching closely to see how the company performs in the coming quarters and whether it can sustain this strong momentum.
