Armstrong Flooring (AFI) Posts Wider-than-Expected Q4 Loss
Armstrong Flooring, Inc. AFI
reported fourth-quarter 2018 results, wherein loss of 35 cents per
share was nearly two times wider than the Zacks Consensus Estimate
of 18 cents. However, the reported loss narrowed from the year-ago
level of 68 cents.
Net sales of $153.8 million lagged the consensus mark of $165.8
million by 7.2%. The reported figure also decreased 3.5% from
$159.4 million in the prior-year quarter. The dismal top-line
performance was mainly due to lower volumes. A decline in volume
during the quarter was mainly due to significant customer purchases
in the third quarter, in response of a projected price rise in
October 2018.
Consequently, shares of the company declined nearly 5% during
yesterday’s trading session.
Adjusted EBITDA came in at $1.8 million in the quarter, down 63.3%
from $4.9 million in the prior-year period. Adjusted EBITDA margin
contracted 190 basis points to 1.2%. The fall was mainly due to
lower sales and higher material cost inflation.
Armstrong Flooring, Inc. Price, Consensus and EPS Surprise
Armstrong Flooring, Inc. Price, Consensus and EPS Surprise | Armstrong Flooring, Inc. Quote
Financials
Armstrong Flooring ended the year with cash of $173.8 million
compared with $40.1 million in the corresponding period of 2017. As
of Dec 31, 2018, long-term debt was $70.6 million, down from $85
million at the end of 2017.
Full-Year 2018 Review
In full-year 2018, the company reported adjusted earnings per share
of 22 cents, decreasing 31.3% year over year. Nonetheless, total
revenues increased 3.4% from the prior-year level to $728.2
million, owing to a favorable mix, higher selling prices along with
volume growth in Luxury Vinyl Tile (“LVTâ€), offsetting inflationary
pressures and lower volumes.
Adjusted EBITDA also grew 3.2% to $57.5 million, while adjusted
EBITDA margin was in line with the prior-year figure of 7.9%. The
positive performance was backed by productivity gains and
cost-saving actions.
2019 View
Backed by attractive growth trajectory, stronger margin profile and
solid balance sheet, the company has provided solid view for
full-year 2019. The company expects adjusted EBITDA for 2019 in the
range of $58-$66 million, higher than the 2018 level, with growth
mostly weighted to the second half of 2019. It expects capital
expenditure in the $30-$35 million range.
Strategic Update
During the quarter, Armstrong Flooring completed the previously
announced sale of wood flooring business for $90.2 million, net of
closing costs, transaction fees and taxes.
Zacks Rank & Other Peer Releases
Currently, Armstrong Flooring holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank
(Strong Buy) stocks here.
United Rentals URI reported fourth-quarter 2018 earnings of $4.85
per share, surpassing the Zacks Consensus Estimate of $4.77 by
1.7%. The reported earnings also increased 45.2% from the year-ago
level of $3.34. Total revenues (Homebuilding, Forestar and
Financial Services) came in at $2.31 billion. The figure surpassed
the Zacks Consensus Estimate of $2.21 billion and increased 20%
year over year.
Meritage Homes Corp. MTH reported fourth-quarter 2018 earnings of
$1.91 per share, surpassing the Zacks Consensus Estimate of $1.51
by 20.5%. The reported earnings also increased 120% from the
year-ago level. Moreover, revenues in the Homebuilding segment
increased 6.6% from the prior-year quarter to $1,008.8
million.
PulteGroup Inc. PHM reported fourth-quarter 2018 earnings of $1.11
per share, beating the consensus mark of $1.09 by 1.8%. The bottom
line also improved 30.6% on a year-over-year basis. Total revenues
of $2.99 billion surpassed the consensus estimate of $2.93 billion
and increased 7.3% on a year-over-year basis.
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United Rentals, Inc. (URI)
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