LANCASTER, Pa. - Armstrong World Industries, Inc. (NYSE: AWI) has reported a robust first quarter for 2024, surpassing analyst expectations with earnings and revenue that underscore the company's operational strength amidst challenging market conditions.
The company announced a first-quarter adjusted EPS of $1.38, which was $0.15 higher than the analyst estimate of $1.23. Revenue for the quarter was also higher than anticipated, coming in at $326.3 million against the consensus estimate of $319.44 million.
The company's performance this quarter reflects a 5% increase in net sales, with both the Mineral Fiber and Architectural Specialties segments contributing to this growth. Operating income saw a notable rise of 23%, while adjusted diluted net earnings per share increased by 31% compared to the same quarter last year. Adjusted EBITDA also grew by 16%.
President and CEO Vic Grizzle highlighted the company's resilience and the successful integration of recent acquisitions, including BOK Modern, LLC, as key factors in the quarter's results.
"The record results we delivered this quarter reflect the resilience of our business model and the momentum we carried into the year," said Grizzle. He also expressed enthusiasm for the acquisition of 3form, LLC, which is expected to enhance Armstrong's Architectural Specialties portfolio.
In light of the strong first-quarter performance, Armstrong World Industries has raised its full-year 2024 guidance. The company now anticipates an adjusted EPS range of $5.80 to $6.05, which is above the analyst consensus of $5.76.
Furthermore, the company expects full-year 2024 revenue to be between $1.395 billion and $1.435 billion, surpassing the consensus estimate of $1.349 billion.
Senior Vice President and CFO Chris Calzaretta expressed confidence in the company's ability to maintain profitable growth and margin expansion, even with the uncertain economic outlook for the latter half of the year.
"We remain focused on consistently delivering profitable growth, adjusted EBITDA margin expansion, and adjusted free cash flow growth despite lingering macroeconomic uncertainty in the back-half of this year," said Calzaretta.
The company's share repurchase program also remains active, with $702 million still authorized for stock buybacks through December 2026. Armstrong World Industries' commitment to returning value to shareholders is evident in its consistent share repurchase efforts and the upward revision of its financial outlook for 2024.
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