LANCASTER, Pa. - Armstrong World Industries, Inc. (NYSE:AWI), a prominent player in ceiling and wall solutions, has reported a record-breaking second quarter for 2024, surpassing analyst expectations for both earnings per share (EPS) and revenue.
The company's adjusted EPS came in at $1.62, which was $0.08 higher than the analyst estimate of $1.54. Revenue for the quarter reached $365.1 million, also topping the consensus estimate of $359.43 million.
The company's financial performance reflects a 12% increase in net sales, primarily driven by solid Mineral Fiber Average Unit Value (AUV) growth and revenue from recent acquisitions in the Architectural Specialties segment. Operating income saw a 9% rise, and diluted net earnings per share increased by 12%. Additionally, adjusted EBITDA improved by 13%, and adjusted diluted net earnings per share were up by 17%.
Vic Grizzle, President and CEO of Armstrong World Industries, attributed the robust results to the resilience of the company's business model and the strength of its growth initiatives. "As market demand stabilizes, we also are continuing to see the benefits from our balanced set of end-markets and the consistent operational execution of our teams," Grizzle explained.
For the upcoming third quarter of 2024, Armstrong World Industries has raised its full-year guidance, now expecting EPS to be between $6.00 and $6.15, compared to the consensus estimate of $5.93. The company also forecasts third-quarter revenue to be in the range of $1.415 to $1.44 billion, slightly above the consensus estimate of $1.413 billion.
The company's second-quarter performance was bolstered by a $27 million increase in volumes and a $13 million improvement in AUV. The Architectural Specialties segment enjoyed a $24 million increase in net sales, primarily due to contributions from the acquisitions of 3form, LLC and BOK Modern, LLC. Mineral Fiber net sales rose by $16 million, largely due to favorable AUV and, to a lesser extent, higher sales volumes.
The increase in operating income for the second quarter was primarily due to a $17 million margin benefit from higher sales volumes and a $9 million benefit from favorable AUV, partially offset by an $18 million increase in selling, general, and administrative expenses.
Looking ahead, Chris Calzaretta, AWI Senior Vice President and CFO, expressed confidence in the company's outlook, stating, "Given our solid second quarter performance and improved line of sight for the full year, we are increasing our guidance for all key metrics."
Calzaretta emphasized the company's commitment to expanding adjusted EBITDA margin at the total company level and continuing disciplined capital deployment to create shareholder value.
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