Ceiling and wall solutions company Armstrong World Industries (NYSE:AWI) will be reporting earnings tomorrow before the bell. Here’s what to expect.

Armstrong World met analysts’ revenue expectations last quarter, reporting revenues of $386.6 million, up 11.3% year on year. It was a satisfactory quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations.

Is Armstrong World a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Armstrong World’s revenue to grow 12.8% year on year to $352.4 million, improving from the 2.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Armstrong World has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Armstrong World’s peers in the building materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AZEK delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 7.9%, and Valmont reported revenues up 2.1%, topping estimates by 2.6%. AZEK traded up 2.5% following the results while Valmont was also up 14.8%.

Read our full analysis of AZEK’s results here and Valmont’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the building materials stocks have shown solid performance, the group has generally underperformed, with share prices down 5.8% on average over the last month. Armstrong World is down 1.3% during the same time and is heading into earnings with an average analyst price target of $154.63 (compared to the current share price of $147.11).

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