Update: Armstrong World Industries Earnings In Line But Full-Year Outlook Lowered - Stock Down ~8%
Martin Vlcek • Mon, Jul. 28
- AWI reported rising sales but falling operating and net income. The company also lowered its full-year outlook on soft demand and rising lumber costs.
- My 2013 long thesis is temporarily interrupted due to weaker-than-expected housing numbers. My thesis correctly urged investors to take at least a partial downside protection through options.
- I remain bullish on AWI based on rising market share but I cut my target price to $65 on current softness. I also urge investors to keep downside protection.