Zacks Research Has Optimistic Outlook of AWI Q3 Earnings

Key Points

• Zacks Research raised its Q3 2025 earnings per share estimate for Armstrong World Industries to $1.98, up from $1.96.
• Armstrong World Industries reported a Q2 earnings per share of $2.09, exceeding the consensus estimate of $1.75, with revenue increasing by 16.3% year-over-year.
• Several analyst firms have issued ratings upgrades and target price increases for Armstrong shares, with an average target of $177.13 and a rating of "Moderate Buy."

Armstrong World Industries, Inc. (NYSE:AWI - Free Report) - Equities research analysts at Zacks Research raised their Q3 2025 earnings per share estimates for Armstrong World Industries in a report issued on Tuesday, August 12th. Zacks Research analyst S. Mukherjee now expects that the construction company will post earnings per share of $1.98 for the quarter, up from their previous estimate of $1.96. The consensus estimate for Armstrong World Industries' current full-year earnings is $6.18 per share. Zacks Research also issued estimates for Armstrong World Industries' Q4 2025 earnings at $1.51 EPS, FY2025 earnings at $7.24 EPS, Q1 2026 earnings at $1.85 EPS, Q3 2026 earnings at $2.23 EPS, Q1 2027 earnings at $2.08 EPS, Q2 2027 earnings at $2.26 EPS and FY2027 earnings at $8.69 EPS.

Several other equities analysts have also commented on AWI. Truist Financial set a $195.00 price target on Armstrong World Industries and gave the company a "buy" rating in a research note on Wednesday, July 30th. JPMorgan Chase & Co. assumed coverage on Armstrong World Industries in a research note on Tuesday, June 24th. They set an "overweight" rating and a $200.00 price target on the stock. UBS Group reiterated a "neutral" rating and issued a $178.00 target price (up previously from $158.00) on shares of Armstrong World Industries in a research note on Wednesday, July 30th. Wall Street Zen upgraded Armstrong World Industries from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Finally, Evercore ISI lifted their target price on Armstrong World Industries from $157.00 to $182.00 and gave the company an "in-line" rating in a research note on Wednesday, July 30th. Four research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Armstrong World Industries has an average rating of "Moderate Buy" and an average target price of $177.13.

Armstrong World Industries Stock Performance

Shares of Armstrong World Industries stock opened at $194.13 on Wednesday. The firm has a market cap of $8.40 billion, a P/E ratio of 28.72, a P/E/G ratio of 2.08 and a beta of 1.43. The company has a current ratio of 1.61, a quick ratio of 1.11 and a debt-to-equity ratio of 0.59. Armstrong World Industries has a 12 month low of $118.14 and a 12 month high of $194.34. The stock's fifty day moving average price is $167.39 and its 200-day moving average price is $153.67.

Armstrong World Industries (NYSE:AWI - Get Free Report) last released its earnings results on Tuesday, July 29th. The construction company reported $2.09 earnings per share for the quarter, topping the consensus estimate of $1.75 by $0.34. Armstrong World Industries had a return on equity of 39.80% and a net margin of 18.95%. The business had revenue of $424.60 million during the quarter, compared to the consensus estimate of $404.05 million. During the same period last year, the company earned $1.62 earnings per share. The business's revenue for the quarter was up 16.3% compared to the same quarter last year.

Institutional Investors Weigh In On Armstrong World Industries

A number of large investors have recently modified their holdings of the business. Employees Retirement System of Texas purchased a new stake in shares of Armstrong World Industries during the second quarter worth about $58,000. Choreo LLC grew its stake in shares of Armstrong World Industries by 53.4% during the second quarter. Choreo LLC now owns 4,245 shares of the construction company's stock worth $690,000 after acquiring an additional 1,477 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Armstrong World Industries by 31.8% during the second quarter. Russell Investments Group Ltd. now owns 7,948 shares of the construction company's stock worth $1,291,000 after acquiring an additional 1,918 shares during the last quarter. XTX Topco Ltd purchased a new stake in shares of Armstrong World Industries during the second quarter worth about $3,554,000. Finally, Summit Global Investments purchased a new stake in shares of Armstrong World Industries during the second quarter worth about $1,140,000. Hedge funds and other institutional investors own 98.93% of the company's stock.

Armstrong World Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be paid a dividend of $0.308 per share. The ex-dividend date is Thursday, August 7th. This represents a $1.23 dividend on an annualized basis and a dividend yield of 0.6%. Armstrong World Industries's payout ratio is presently 18.20%.

About Armstrong World Industries

Armstrong World Industries, Inc, together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass wool, metal, wood, felt, wood fiber, and glass-reinforced-gypsum; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings, walls, and facades for use in commercial settings; and manufactures ceiling suspension system (grid) products.

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