Mark Yagalla
Gold, currencies, macro, commodities

Armstrong World Industries: Better Pricing And Capacity Lead To Upside

Executive summary:

  • The rise in lumber prices impacted the latest quarter, but the company has made strategic changes to limit any future impact.
  • Both Lowe's and Home Depot are forecasting sales gains for this year and that bodes well for the ceilings and flooring market leader.
  • I see the company reaping the rewards of its $750 million capex spending starting this year.
  • Look for growth this year in the company's ceilings, commercial flooring and architectural specialties businesses.

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Shares of Armstrong World Industries (NYSE:AWI) got hit February 24 after the company missed EPS estimates by $.08. The reason for the miss is that the company has been dealing with rising lumber prices, which have pressured margins and the...

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