NYSE$AWI

Armstrong World Industries Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Armstrong's Q3 2022 earnings reflected solid sales growth in both Mineral Fiber and Architectural Specialties, tempered by economic uncertainty and project delays.

Armstrong World Industries reported an 11% increase in net sales compared to the prior-year quarter. Operating income increased by 2%, and diluted earnings per share from continuing operations increased by 11%. The company is revising its 2022 guidance to reflect net sales growth of 10% to 12% and adjusted EBITDA growth of 4% to 6% versus the prior year.

  • Net sales increased by 11% compared to the prior-year quarter.
  • Operating income increased by 2% year-over-year.
  • Adjusted EBITDA increased by 5% year-over-year.
  • Revised 2022 guidance includes net sales growth of 10% to 12% and adjusted EBITDA growth of 4% to 6%.

Headline financials

Total Revenue

$325M

Previous: $292M+11.2%
EPS (adj)

$1.36

Previous: $1.17+16.2%
Adjusted EBITDA

$105M

Previous: $99M+6.1%
Capital Expenditures

$46.5M

No prior period
Free Cash Flow

$57.5M

Previous: $50.8M+13.2%
Net Income

$57.5M

Previous: $50.8M+13.2%
Operating Income

$73.3M

Previous: $72.1M+1.7%
Gross Profit

$118M

Previous: $111M+6.1%
Cash & Equivalents

$86.8M

Previous: $94.3M-8.0%
Total Assets

$1.74B

Previous: $1.7B+2.0%
Stock-Based Comp

$3.6M

Previous: $3M+20.0%

Revenue & EPS history

Armstrong · Revenue · Quarterly

$325M

Q3 2022+11.2%vs Q3 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

The company expects Mineral Fiber volumes to remain challenged into the fourth quarter and is lowering its full-year 2022 financial outlook due to third-quarter results and overall increased economic uncertainty.

Headwinds

  • Mineral Fiber volumes are expected to remain challenged into the fourth quarter.
  • Full-year 2022 financial outlook is being lowered.
  • Increased economic uncertainty is impacting the outlook.
  • Cost control and adjustments will be implemented.
  • Long-term growth strategy will still be supported.

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 Q3 2022

Historical avgQ3 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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