Armstrong World Industries (NYSE:AWI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
According to Zacks, “For 2018, Armstrong World guided net sales to grow in the range of 5-7% aided by a modest upturn in volume and AUV improvement. Further, the tax reform will reduce its tax rate from 35% to 25%. Thus, Armstrong World expects EPS to grow in the range of 17-24% in the year. Productivity improvements in plants and focus on restructuring activities will also aid the bottom line. Further, continued sales leverage and capital investments at Tectum will fortify its Architectural Specialty business. Moreover, investment in new products, segment reclassification and strong balance sheet will drive Armstrong World’s growth. Over the past year, the stock has outperformed the industry. However, operational headwinds in Armstrong World’s manufacturing facilities will hurt growth. In addition, the underlying fundamentals for repair and remodel activity remain uneven, which might impact results.”
Other equities research analysts also recently issued research reports about the company. SunTrust Banks restated a “buy” rating and set a $62.00 target price on shares of Armstrong World Industries in a research report on Wednesday, November 22nd. JPMorgan Chase & Co. downgraded Armstrong World Industries from a “neutral” rating to an “underweight” rating in a research report on Wednesday, March 7th. Nomura set a $65.00 target price on Armstrong World Industries and gave the stock a “buy” rating in a research report on Tuesday, November 21st. Jefferies Group assumed coverage on Armstrong World Industries in a research report on Tuesday, December 12th. They set a “hold” rating and a $62.00 target price on the stock. Finally, Royal Bank of Canada increased their target price on Armstrong World Industries from $55.00 to $58.00 and gave the stock a “sector perform” rating in a research report on Wednesday, November 22nd. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $57.89.
Armstrong World Industries (NYSE:AWI) last posted its quarterly earnings data on Monday, February 26th. The construction company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.66 by ($0.16). Armstrong World Industries had a net margin of 12.77% and a return on equity of 41.95%. The firm had revenue of $214.30 million during the quarter, compared to analysts’ expectations of $263.06 million. During the same quarter in the previous year, the company posted $0.41 EPS. Armstrong World Industries’s revenue for the quarter was up 9.1% on a year-over-year basis. equities analysts anticipate that Armstrong World Industries will post 3.59 earnings per share for the current year.
Several institutional investors have recently added to or reduced their stakes in the company. Teachers Retirement System of The State of Kentucky increased its holdings in shares of Armstrong World Industries by 4.1% in the fourth quarter. Teachers Retirement System of The State of Kentucky now owns 25,807 shares of the construction company’s stock worth $1,563,000 after purchasing an additional 1,028 shares during the period. UBS Asset Management Americas Inc. increased its holdings in shares of Armstrong World Industries by 3.1% in the fourth quarter. UBS Asset Management Americas Inc. now owns 45,102 shares of the construction company’s stock worth $2,731,000 after purchasing an additional 1,344 shares during the period. Balter Liquid Alternatives LLC increased its holdings in shares of Armstrong World Industries by 3.0% in the fourth quarter. Balter Liquid Alternatives LLC now owns 52,038 shares of the construction company’s stock worth $3,151,000 after purchasing an additional 1,510 shares during the period. Legal & General Group Plc increased its holdings in shares of Armstrong World Industries by 3.5% in the third quarter. Legal & General Group Plc now owns 63,868 shares of the construction company’s stock worth $3,275,000 after purchasing an additional 2,130 shares during the period. Finally, Cerebellum GP LLC bought a new position in shares of Armstrong World Industries in the fourth quarter worth $129,000.
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Armstrong World Industries Company Profile
Armstrong World Industries, Inc (AWI) is a global producer of ceiling systems. The Company owns and operates the Building Products (Ceilings) segment. The Company designs, manufactures and sells ceiling systems (primarily mineral fiber, fiberglass wool and metal) around the world. Its products are used in commercial and institutional buildings.
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