NYSE$AWI

Armstrong World Industries Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Armstrong's Q2 2022 financial results were reported, showing net sales growth driven by price increases and Architectural Specialties segment strength.

Armstrong World Industries reported a 15% increase in net sales, driven by price over higher-than-expected inflation and strong growth in the Architectural Specialties segment. While operating income and diluted earnings per share decreased slightly, adjusted EBITDA and adjusted diluted earnings per share increased. The company is updating its 2022 guidance with expectations of net sales growth of 11% to 13% and adjusted EBITDA growth of 10% to 13%.

  • Net sales increased by 15% compared to the prior-year quarter.
  • Operating income decreased by 9%, and diluted earnings per share from continuing operations decreased by 3% compared to the prior-year quarter, including higher charges for 2020 acquisition-related fair value adjustments.
  • Adjusted EBITDA increased by 2%, and adjusted diluted earnings per share increased by 11% compared to the prior-year quarter.
  • 2022 Guidance was updated: Net Sales of +11% to 13%, adjusted EBITDA of +10% to 13% versus prior year

Headline financials

Total Revenue

$321M

Previous: $280M+14.6%
EPS (adj)

$1.29

Previous: $1.16+11.2%
Adjusted EBITDA

$102M

Previous: $100M+2.0%
Free Cash Flow

$52.2M

Previous: $55.1M-5.3%
Net Income

$52.2M

Previous: $55.1M-5.3%
Operating Income

$71.6M

Previous: $78.3M-8.6%
Gross Profit

$118M

Previous: $105M+12.4%
Cash & Equivalents

$79.3M

Previous: $119M-33.4%
Total Assets

$1.73B

Previous: $1.72B+1.0%
Stock-Based Comp

$4.4M

Previous: $3.2M+37.5%

Revenue & EPS history

Armstrong · Revenue · Quarterly

$321M

Q2 2022+14.6%vs Q2 2021
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 revenue growth outlook and modestly reducing its adjusted EBITDA outlook due to year-to-date inflation impacts.

Tailwinds

  • Continued, though uneven, commercial construction recovery
  • Encouraging performance of growth initiatives
  • Manufacturing productivity driven by operational excellence efforts

Headwinds

  • Inflation accelerated faster and stronger than anticipated
  • Inflation created temporary pressures on margins

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 Q2 2022

Historical avgQ2 2022

-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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