Armstrong World Industries (AWI 46.85, +0.10, +0.2%) designs and manufactures commercial and residential ceiling, wall and suspension system solutions. Earlier today, the company reported its first quarter results, and, in doing so, it reaffirmed its full-year outlook.
The early response to the report has been rather nondescript even though the report itself wasn't nondescript.
Armstrong reported an adjusted profit of $0.55 per diluted share on a 9.7% increase in revenue to $315.4 million. The former was a bit shy of analysts' average expectation while the latter exceeded analysts' average expectation.
The revenue growth was driven by growth across all segments, led by the core Americas division, which enjoyed a 9.8% increase in net sales to $219.8 million and achieved a high mid-single digits volume increase over a strong prior-year period. The EMEA segment saw the strongest growth in net sales (+11.7% to $66.6 million) while net sales for the Pacific Rim segment jumped 4.7% to $29.0 million.
The company parlayed the solid sales growth, good expense control, and a lower costs of golds sold as a percentage of net sales into a 192% increase in reported operating income of $63.0 million.
Management understandably expressed some enthusiasm for the strong start to the year, noting that it demonstrates how the company's growth initiatives are gaining traction.
In conjunction with today's report, Armstrong reaffirmed its full-year guidance of revenue growth of 5%-7% and 10%-14% adjusted EBITDA growth versus the prior year.
At Friday's close, shares of AWI were up 11.8% in 2017 and up 14.6% over the last 52 weeks.