LANCASTER, PA – Armstrong World Industries, Inc. (NYSE: AWI) reported a strong first quarter of 2024, beating analysts’ expectations, with earnings and revenue that underscored the company’s operating strength in challenging market conditions.
The company reported first-quarter adjusted earnings per share of $1.38, $0.15 above analysts’ estimates of $1.23. Revenue for the quarter was also higher than expected, coming in at $326.3 million versus the consensus estimate of $319.44 million.
The company’s results for the quarter reflected a 5% increase in net sales, with growth driven by both its mineral fiber and architectural products segments. Operating income increased 23% and adjusted diluted net earnings per share increased 31% compared to the same quarter last year. Adjusted EBITDA also increased by 16%.
President and CEO Vic Grizzle highlighted the company’s strength and successful integration of recent acquisitions, including BOK Modern, LLC, as key factors impacting the quarter’s results.
“The record results we achieved this quarter reflect the strength of our business model and the momentum we have brought to the table this year,” Grizzle said. He also expressed enthusiasm for the acquisition of 3form, LLC, which is expected to expand Armstrong’s architectural solutions portfolio.
In light of strong first-quarter results, Armstrong World Industries raised its full-year 2024 guidance. The company now expects adjusted earnings per share to be between $5.80 and $6.05, above the analyst consensus of $5.76.
Additionally, the company expects full-year 2024 revenue to be between $1.395 billion and $1.435 billion, beating the consensus estimate of $1.349 billion.
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Senior Vice President and Chief Financial Officer Chris Calzaretta expressed confidence in the company’s ability to maintain profitable growth and earnings expansion, even despite the uncertain economic outlook for the second half of the year.
“We remain focused on consistently delivering profitable growth, expanding adjusted EBITDA margin and adjusted free cash flow growth despite ongoing macroeconomic uncertainty in the second half of this year,” Calzaretta said.
The company’s share repurchase program also remains active, with $702 million still allocated for share repurchases through December 2026. Armstrong World Industries’ commitment to returning value to shareholders is evident in its consistent efforts to repurchase shares and upwardly revise its 2024 financial guidance.
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