Why Armstrong World Industries (AWI) Stock Is Slumping Today

NEW YORK (TheStreet) -- Shares of Armstrong World Industries Inc. (AWI) are down by -7.51% to $51.21 on heavy volume in mid-morning trading on Monday after the company reported adjusted diluted earnings per share of 60 cents for the 2014 second quarter, below the Capital IQ consensus estimate of 66 cents.

The company, which is a global producer of flooring products and ceiling systems, reported a 0.5% growth in revenue to $710 million for the most recent quarter, falling short of the consensus estimate of $727.12 million.

Armstrong lowered its 2014 full year estimates to between $2.15 and $2.40, from $2.55 to $2.80. Analysts are expecting earnings of $2.60 for the year.

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Separately, TheStreet Ratings team rates ARMSTRONG WORLD INDUSTRIES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ARMSTRONG WORLD INDUSTRIES (AWI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

AWI Chart AWI data by YCharts

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