Armstrong World Industries (NYSE:AWI) Stock Price Down 6.2% After Earnings Miss

Armstrong World Industries, Inc. (NYSE:AWI) fell 6.2% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $174.01 and last traded at $180.9560. 325,728 shares were traded during mid-day trading, a decline of 30% from the average session volume of 468,165 shares. The stock had previously closed at $192.83.

The construction company reported $1.61 earnings per share for the quarter, missing the consensus estimate of $1.67 by ($0.06). The firm had revenue of $388.30 million during the quarter, compared to analyst estimates of $400.87 million. Armstrong World Industries had a net margin of 19.08% and a return on equity of 38.97%. The business’s revenue was up 5.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.50 earnings per share. Armstrong World Industries has set its FY 2026 guidance at 8.050-8.350 EPS.

Armstrong World Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 19th. Shareholders of record on Thursday, March 5th will be given a $0.339 dividend. This represents a $1.36 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, March 5th. Armstrong World Industries’s dividend payout ratio (DPR) is currently 19.46%.

Key Headlines Impacting Armstrong World Industries

Here are the key news stories impacting Armstrong World Industries this week:

• Positive Sentiment: Q4 revenue was up 5.6% year‑over‑year and profitability remains strong (net margin ~19.1%, ROE ~39%), showing resilient fundamentals. MarketBeat Earnings Release
• Positive Sentiment: Management provided FY‑2026 EPS guidance of $8.05–$8.35, which still implies solid full‑year profitability and cash generation versus historical levels. MarketBeat Guidance Details
• Neutral Sentiment: Earnings call transcript and slide deck are available for details on segment trends and margin drivers — useful for modeling next-year assumptions. Yahoo Earnings Call Transcript
• Neutral Sentiment: Full Q4 transcript coverage (Seeking Alpha) provides management commentary on demand and cost dynamics that investors will parse for guidance clarity. Seeking Alpha Transcript
• Negative Sentiment: Q4 EPS missed consensus: $1.61 reported vs. $1.67 expected, and revenue missed at $388.3M vs. ~$400.9M consensus — the immediate catalyst for selling pressure. Zacks: Misses Q4 Estimates
• Negative Sentiment: FY‑2026 EPS guidance ($8.05–8.35) came in below the consensus (~$8.45), prompting concern that upside for next year is limited versus Street expectations. Investing.com: Shares Edge Down
• Negative Sentiment: Market reaction: elevated volume and the stock trading below its 50/200‑day moving averages amplified the sell‑off as investors reassessed near‑term momentum. MSN: Shares Slip After Q4 Miss

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Weiss Ratings reiterated a “buy (b)” rating on shares of Armstrong World Industries in a report on Wednesday, January 21st. JPMorgan Chase & Co. lifted their price target on shares of Armstrong World Industries from $210.00 to $220.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 29th. Wall Street Zen lowered Armstrong World Industries from a “buy” rating to a “hold” rating in a report on Sunday, November 2nd. Finally, UBS Group lifted their price target on Armstrong World Industries from $178.00 to $200.00 and gave the stock a “neutral” rating in a report on Wednesday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $207.50.

Institutional Trading of Armstrong World Industries

A number of large investors have recently bought and sold shares of AWI. Root Financial Partners LLC purchased a new stake in Armstrong World Industries during the 3rd quarter valued at approximately $25,000. Larson Financial Group LLC increased its holdings in shares of Armstrong World Industries by 77.0% in the fourth quarter. Larson Financial Group LLC now owns 131 shares of the construction company’s stock valued at $25,000 after purchasing an additional 57 shares during the period. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Armstrong World Industries during the fourth quarter worth approximately $27,000. Cullen Frost Bankers Inc. lifted its holdings in shares of Armstrong World Industries by 124.1% during the fourth quarter. Cullen Frost Bankers Inc. now owns 177 shares of the construction company’s stock worth $34,000 after purchasing an additional 98 shares during the period. Finally, CIBC Private Wealth Group LLC grew its position in Armstrong World Industries by 426.5% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 179 shares of the construction company’s stock valued at $35,000 after buying an additional 145 shares during the last quarter. Institutional investors and hedge funds own 98.93% of the company’s stock.

Armstrong World Industries Trading Down 9.7%

The firm has a market capitalization of $7.51 billion, a price-to-earnings ratio of 24.92, a price-to-earnings-growth ratio of 1.68 and a beta of 1.33. The business’s 50 day moving average price is $192.67 and its 200-day moving average price is $192.78. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.52 and a quick ratio of 1.04.

Armstrong World Industries Company Profile

Armstrong World Industries, Inc is a leading global manufacturer of commercial ceiling and wall solutions. The company offers a diverse portfolio of acoustical, decorative and specialty ceiling systems designed to enhance interior environments in offices, healthcare facilities, schools, retail outlets and other non-residential settings. Through its focus on performance, aesthetics and sustainability, Armstrong World Industries addresses both functional and design requirements for architects, contractors and building owners.

Armstrong’s product range includes mineral fiber, fiberglass, wood wool, metal and stone wool ceiling panels, as well as suspension and grid systems.