Armstrong World (AWI) Misses Q2 EPS by 1c, Revenues Beat

Armstrong World (NYSE: AWI) reported Q2 EPS of $1.01, $0.01 worse than the analyst estimate of $1.02. Revenue for the quarter came in at $248.6 million versus the consensus estimate of $245.6 million.

Key Highlights

• As reported net sales of $248.6 million, up 10% versus the prior year quarter
• As reported operating income of $66.0 million, down 5% versus the prior year quarter, driven by accelerated depreciation charges associated with closure of the St. Helens facility
• Architectural Specialties segment sales grew 18% with an adjusted EBITDA margin of 22%
• Adjusted EBITDA up 12% versus the prior year quarter, with adjusted EBITDA margins expanding 70 basis points
• Share repurchase program authorization increased by $300 million

Market Outlook and 2018 Guidance

“We are reaffirming our full year guidance of 5%-7% revenue growth, greater than 10% adjusted EBITDA growth, and free cash flow growth of 20%-30% versus the prior year,” said Brian MacNeal, CFO. “With $105 million of share repurchases in the first half of 2018, we have reduced our outstanding share count for our second quarter EPS calculations to 52 million from 53 million previously. Since inception of our repurchase program in 2016, we have bought back 4.7 million shares at an average share price of $48.34.”

For earnings history and earnings-related data on Armstrong World (AWI) click here.

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