Armstrong World Industries (AWI) Down 0.6% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Armstrong World Industries (AWI). Shares have lost about 0.6% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Armstrong World Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.Armstrong World Q3 Earnings & Sales Top, Raises 2025 OutlookArmstrong World posted robust third-quarter 2025 results, beating the Zacks Consensus Estimates on adjusted earnings and net sales and growing year over year.Revenues and Earnings Beat the StreetAdjusted earnings were $2.05 per share, up 13.3% from $1.81 in the prior year and above the Zacks Consensus Estimate of $1.99 by 3%.Net sales rose 10% year over year to $425.6 million and also surpassed the consensus mark of $425 million by 5.2%.Segment HighlightsMineral Fiber: Net sales climbed 6.2% to $274 million, driven by improvement in Average Unit Value (AUV) and higher volume growth. Adjusted EBITDA rose 5.5% to $119 million.Architectural Specialties: Net sales surged 17.6% to $151.2 million, largely from the 2024 acquisitions of 3form and Zahner, along with $7 million increase in organic net sales. Adjusted EBITDA increased 9.7% to $28 million.Margin Expansion Remains the StandoutGross profit reached $178.5 million, up from $164.1 million in the prior year quarter. Adjusted operating income rose 4.4% to $118 million, while operating margin contracted 120 basis points (bps) to 27.6%.Adjusted EBITDA increased 6.4% year over year to $148 million, while margin contracted 120 bps to 34.7%.2025 Guidance RaisedArmstrong World now anticipates net sales to be within $1.623-$1.638 billion (up from $1.60-$1.63 billion expected earlier), indicating a 12-13% increase from the year-ago figure.Adjusted EBITDA is now estimated to be within $553-$563 million (up from $545-$560 million expected earlier), indicating a rise of 14-16% year over year. Adjusted earnings per share are now expected to be between $7.45 and $7.55 (compared with $7.15-$7.30 expected earlier), implying growth of 18-20% from the reported figure of 2024.Adjusted free cash flow is now anticipated to be between $342 million and $352 million (up from $330-$345 million expected earlier), indicating a 15-18% increase year over year.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.The consensus estimate has shifted 10.6% due to these changes.VGM ScoresCurrently, Armstrong World Industries has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Armstrong World Industries has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Armstrong World Industries, Inc. (AWI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks