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Armstrong World (AWI) Introduces Five-Year Growth Strategy
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Armstrong World Industries, Inc. (AWI - Free Report) announced five-year compounded annual growth targets.
Vic Grizzle, AWI’s president and chief executive officer, stated, “We are excited to increase our growth outlook as a result of the success we are achieving with our key growth initiatives. Through our innovation, Healthy Spaces and digital efforts, we expect to deliver accelerated value creation as the market recovery continues and secular trends toward sustainable, healthy built spaces provide tailwinds for growth.”
Five-year Growth Targets
Armstrong World expects revenue growth of 10-13%. Adjusted EBITDA is anticipated to rise 12-15%. Adjusted earnings por share EPS is projected in the range of 15-20%. Adjusted free cash flow is likely to be in the 15-20% range.
AWI has been benefiting from investment in new products as well as inorganic moves. Also, the company is focused on its digitization initiative. The company launched 35 products in 2020, reflecting a 50% increase from its normal pace of activity. The company stated that there are other innovative products in the pipeline that are likely to be added to the 24/7 Defend family in the future.
Armstrong World remains focused on digitalization initiatives and new technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its contribution to growth. During third-quarter 2021, the company continued with additional digital investments of $2 million, with several initiatives focusing on speed and cost benefits for customers. Investments in digital design and pre-construction services are one such initiative.
Owens Corning (OC - Free Report) reported solid results for fourth-quarter 2021, wherein earnings and net sales surpassed their respective Zacks Consensus Estimate as well as improved on a year-over-year basis.
Owens Corning’s solid quarterly results were backed by strong demand across the markets served and commercial and operational execution, despite supply chain disruptions and inflation.
Masco Corp. (MAS - Free Report) reported lackluster earnings for fourth-quarter 2021. The bottom line not only lagged the Zacks Consensus Estimate but also declined on a year-over-year basis due to supply-chain challenges and inflation headwinds.
Nonetheless, Masco’s net sales surpassed the consensus mark and improved from the prior-year level on strong demand.
Otis Worldwide Corp. (OTIS - Free Report) reported strong earnings for fourth-quarter 2021. Its earnings surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.
Otis’ sales improved from the year-ago figure but lagged the consensus mark marginally.
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Armstrong World (AWI) Introduces Five-Year Growth Strategy
Armstrong World Industries, Inc. (AWI - Free Report) announced five-year compounded annual growth targets.
Vic Grizzle, AWI’s president and chief executive officer, stated, “We are excited to increase our growth outlook as a result of the success we are achieving with our key growth initiatives. Through our innovation, Healthy Spaces and digital efforts, we expect to deliver accelerated value creation as the market recovery continues and secular trends toward sustainable, healthy built spaces provide tailwinds for growth.”
Five-year Growth Targets
Armstrong World expects revenue growth of 10-13%. Adjusted EBITDA is anticipated to rise 12-15%. Adjusted earnings por share EPS is projected in the range of 15-20%. Adjusted free cash flow is likely to be in the 15-20% range.
AWI has been benefiting from investment in new products as well as inorganic moves. Also, the company is focused on its digitization initiative. The company launched 35 products in 2020, reflecting a 50% increase from its normal pace of activity. The company stated that there are other innovative products in the pipeline that are likely to be added to the 24/7 Defend family in the future.
Armstrong World remains focused on digitalization initiatives and new technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its contribution to growth. During third-quarter 2021, the company continued with additional digital investments of $2 million, with several initiatives focusing on speed and cost benefits for customers. Investments in digital design and pre-construction services are one such initiative.
Image Source: Zacks Investment Research
Armstrong World’s shares have gained 4.5% in a year against the Zacks Building Products - Miscellaneous industry’s 6.9% fall.
Zacks Rank
Currently, Armstrong World carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Releases
Owens Corning (OC - Free Report) reported solid results for fourth-quarter 2021, wherein earnings and net sales surpassed their respective Zacks Consensus Estimate as well as improved on a year-over-year basis.
Owens Corning’s solid quarterly results were backed by strong demand across the markets served and commercial and operational execution, despite supply chain disruptions and inflation.
Masco Corp. (MAS - Free Report) reported lackluster earnings for fourth-quarter 2021. The bottom line not only lagged the Zacks Consensus Estimate but also declined on a year-over-year basis due to supply-chain challenges and inflation headwinds.
Nonetheless, Masco’s net sales surpassed the consensus mark and improved from the prior-year level on strong demand.
Otis Worldwide Corp. (OTIS - Free Report) reported strong earnings for fourth-quarter 2021. Its earnings surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.
Otis’ sales improved from the year-ago figure but lagged the consensus mark marginally.