Armstrong World Industries (AWI) saw its stock plummet 5.11% in pre-market trading on Tuesday after the company released its third-quarter earnings report. Despite beating analyst estimates, the company's raised full-year outlook appears to have fallen short of investor expectations.
The building products manufacturer reported adjusted earnings per share of $2.05 for Q3, surpassing the FactSet consensus estimate of $2.03. Net sales for the quarter rose 10% year-over-year to $425.2 million, slightly above analyst expectations of $423.3 million. The company's net income increased 12.2% to $86.3 million compared to the same period last year.
While Armstrong World Industries raised its full-year 2025 guidance, the new outlook seems to have disappointed investors. The company now expects adjusted EPS of $7.45 to $7.55, up from its previous range of $7.15 to $7.30. However, this increase may not have been as robust as some market participants had anticipated. Similarly, the updated revenue forecast of $1.62 billion to $1.64 billion, while higher than the previous outlook, appears to have been viewed as conservative by the market.
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