NYSE$AWI

Armstrong World Industries Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Armstrong's Q1 2023 financial performance was solid, marked by sales growth and strategic cost management.

Armstrong World Industries reported a 10% increase in net sales for Q1 2023 compared to the prior year, driven by strong performance in both the Mineral Fiber and Architectural Specialties segments. Operating income and diluted net earnings per share also increased by 11%.

  • Net sales increased by 10% year-over-year, driven by growth in both Mineral Fiber and Architectural Specialties segments.
  • Operating income and diluted net earnings per share both increased by 11% compared to the prior-year quarter.
  • Adjusted EBITDA increased by 9% and adjusted diluted net earnings per share increased by 10% year-over-year.
  • The company maintains its full-year 2023 outlook, focusing on strategic initiatives and cost management.

Headline financials

Total Revenue

$310M

Previous: $283M+9.8%
EPS (adj)

$1.12

Previous: $1.02+9.8%
Adjusted EBITDA

$96M

Previous: $87M+10.3%
Free Cash Flow

$47.3M

Previous: $44.4M+6.5%
Net Income

$47.3M

Previous: $44.4M+6.5%
Operating Income

$70.2M

Previous: $63.2M+11.1%
Gross Profit

$112M

Previous: $102M+9.7%
Cash & Equivalents

$96M

Previous: $76.1M+26.1%
Total Assets

$1.69B

Previous: $1.71B-1.2%
Stock-Based Comp

$3.9M

Previous: $2.9M+34.5%

Revenue & EPS history

Armstrong · Revenue · Quarterly

$310M

Q1 2023+9.8%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Armstrong · $283M total across 2 segments · Q1 2022

  • Mineral Fiber
    $203M
  • Architectural Specialties
    $79.4M

Forward guidance

Armstrong World Industries is maintaining its full-year 2023 outlook, focusing on executing its strategy, delivering manufacturing productivity, managing costs, and growing adjusted free cash flow.

Tailwinds

  • Net sales are expected to be between $1.26 billion and $1.31 billion.
  • Adjusted EBITDA is projected to be between $395 million and $420 million.
  • Adjusted diluted net earnings per share are anticipated to be between $4.80 and $5.05.
  • Adjusted free cash flow is expected to be between $230 million and $250 million.
  • The company will continue to create long-term value for shareholders through reinvestment, strategic partnerships, and returning excess cash.

Headwinds

  • The company acknowledges the challenging macroeconomic environment and expects weaker market conditions ahead.
  • Uncertainties in forward-looking statements are subject to risks related to future financial and operational results.
  • Expected savings from cost management initiatives.
  • The performance of WAVE joint venture.
  • Market and broader economic conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.9%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+14.7%

Q4 2016

Best reaction

-14.3%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-5.2%-9.9%
Q4 2025-7.4%-10.0%-14.4%
Q3 2025-4.6%-6.0%-5.8%
Q1 2025+1.9%+6.5%+19.3%
Q4 2024+5.2%+5.4%-1.0%
Q3 2024+2.2%+2.4%+16.7%
Q2 2024+0.5%-3.4%-4.2%
Q1 2024-4.0%-2.7%-2.5%
Q4 2023+13.3%+16.4%+18.7%
Q3 2023+5.0%+5.7%+20.7%
Q2 2023+3.2%+3.0%-3.0%
Q1 2023-9.2%-5.9%-13.4%
Q4 2022-2.5%-1.8%-16.3%
Q3 2022-6.5%-5.4%-3.6%
Q2 2022+3.4%+8.0%+9.6%
Q1 2022-6.9%-8.9%-11.2%
Q4 2021-6.2%-5.7%-4.8%
Q3 2021+1.3%+3.8%+12.1%
Q2 2021+1.8%+2.5%-1.3%
Q1 2021+3.5%+3.1%+4.6%
Q4 2020+13.7%+10.2%+16.4%
Q3 2020-8.9%-7.8%+19.7%
Q2 2020-13.3%-12.7%-8.1%
Q1 2020+1.0%-2.8%-1.2%
Q4 2019-0.8%-5.9%-26.4%
Q3 2019-8.9%-8.1%-5.3%
Q2 2019-0.9%-3.6%-6.3%
Q1 2019-1.2%+1.7%-1.1%
Q4 2018+1.7%+1.1%+3.8%
Q3 2018+6.5%+15.3%+15.6%
Q2 2018+1.3%+3.7%+4.3%
Q1 2018+2.0%+2.3%+9.8%
Q4 2017-3.8%-2.7%-9.2%
Q3 2017-4.6%-4.1%+11.7%
Q2 2017+9.8%+6.7%+6.4%
Q1 2017-1.0%-1.9%-10.9%
Q4 2016+14.7%+18.8%+13.5%
Q3 2016-6.5%-7.5%+4.9%
Q2 2016+1.5%+3.7%+5.1%
Q1 2016-3.7%
Q4 2015-5.2%
Q3 2015+3.6%
Q2 2015+4.8%
Q1 2015-2.5%
Q4 2014+1.5%
Q3 2014-7.1%
Q2 2014-10.5%
Q1 2014-0.3%
Q4 2013-9.1%
Q3 2013+1.8%
Q2 2013-1.9%
Q1 2013-2.5%
Q4 2012-7.9%
Q3 2012+6.2%
Q2 2012-14.3%
Q1 2011-3.2%
Q1 2012+3.9%
Q4 2009+1.5%
Q3 2010-14.1%
Q3 2011-14.1%
Q2 2010-10.4%
Q4 2010-10.4%
Q2 2011-10.4%
Q1 2010-8.0%

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