Armstrong World Industries (NYSE:AWI) Trading Down 6.2% on Disappointing Earnings

Armstrong World Industries, Inc. (NYSE:AWI) shares were down 6.2% on Tuesday following a dissappointing earnings announcement. The company traded as low as $174.01 and last traded at $180.9560. Approximately 325,728 shares were traded during trading, a decline of 30% from the average daily volume of 468,165 shares. The stock had previously closed at $192.83.

The construction company reported $1.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.67 by ($0.06). Armstrong World Industries had a net margin of 19.08% and a return on equity of 38.97%. The company had revenue of $388.30 million during the quarter, compared to analysts’ expectations of $400.87 million. During the same quarter in the previous year, the company earned $1.50 earnings per share. The firm’s quarterly revenue was up 5.6% compared to the same quarter last year. Armstrong World Industries has set its FY 2026 guidance at 8.050-8.350 EPS.

Armstrong World Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, March 5th will be given a dividend of $0.339 per share. This represents a $1.36 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, March 5th. Armstrong World Industries’s dividend payout ratio (DPR) is presently 19.31%.

Wall Street Analysts Forecast Growth

AWI has been the subject of a number of recent analyst reports. Weiss Ratings restated a “buy (b)” rating on shares of Armstrong World Industries in a report on Wednesday, January 21st. UBS Group increased their price objective on Armstrong World Industries from $178.00 to $200.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 29th. JPMorgan Chase & Co. lifted their target price on Armstrong World Industries from $210.00 to $220.00 and gave the company an “overweight” rating in a research report on Wednesday, October 29th. Finally, Wall Street Zen lowered Armstrong World Industries from a “buy” rating to a “hold” rating in a research note on Sunday, November 2nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Armstrong World Industries presently has an average rating of “Moderate Buy” and an average target price of $207.50.

Hedge Funds Weigh In On Armstrong World Industries

Hedge funds have recently bought and sold shares of the company. Alps Advisors Inc. raised its position in Armstrong World Industries by 1,317.0% in the 3rd quarter. Alps Advisors Inc. now owns 36,418 shares of the construction company’s stock valued at $7,138,000 after purchasing an additional 33,848 shares during the last quarter. Schroder Investment Management Group increased its stake in Armstrong World Industries by 3.3% in the second quarter. Schroder Investment Management Group now owns 177,232 shares of the construction company’s stock valued at $28,790,000 after purchasing an additional 5,730 shares during the period. Public Sector Pension Investment Board raised its holdings in shares of Armstrong World Industries by 10.8% in the third quarter. Public Sector Pension Investment Board now owns 208,870 shares of the construction company’s stock valued at $40,941,000 after buying an additional 20,280 shares during the last quarter. Adage Capital Partners GP L.L.C. boosted its stake in shares of Armstrong World Industries by 121.3% during the second quarter. Adage Capital Partners GP L.L.C. now owns 737,000 shares of the construction company’s stock worth $119,718,000 after buying an additional 404,000 shares during the period. Finally, Calamos Advisors LLC acquired a new stake in shares of Armstrong World Industries during the third quarter worth about $2,055,000. Institutional investors and hedge funds own 98.93% of the company’s stock.

Armstrong World Industries Stock Performance

The stock has a market cap of $7.72 billion, a PE ratio of 25.61, a price-to-earnings-growth ratio of 1.73 and a beta of 1.33. The stock has a fifty day moving average of $192.88 and a 200-day moving average of $192.88. The company has a quick ratio of 1.04, a current ratio of 1.52 and a debt-to-equity ratio of 0.47.

Armstrong World Industries Company Profile

Armstrong World Industries, Inc is a leading global manufacturer of commercial ceiling and wall solutions. The company offers a diverse portfolio of acoustical, decorative and specialty ceiling systems designed to enhance interior environments in offices, healthcare facilities, schools, retail outlets and other non-residential settings. Through its focus on performance, aesthetics and sustainability, Armstrong World Industries addresses both functional and design requirements for architects, contractors and building owners.

Armstrong’s product range includes mineral fiber, fiberglass, wood wool, metal and stone wool ceiling panels, as well as suspension and grid systems.