Armstrong World (NYSE: AWI) reported Q4 EPS of $1.11, $0.25 better than the analyst estimate of $0.86. Revenue for the quarter came in at $246.9 million versus the consensus estimate of $256.29 million.

Key Highlights

• Net sales of $246.9 million, up 3% versus the prior year quarter
• Operating income of $62.2 million, up 18% versus the prior year quarter
• Adjusted EBITDA and EPS grew 14% and 40%, respectively, versus the prior year quarter
• 2020 Guidance: Net Sales growth of 6-8%, year-over-year EBITDA margin expansion, and adjusted Free Cash Flow growth of 11-19%
• Transferring approximately $1 billion of pension obligations to Athene Annuity and Life

“2019 was another strong year for AWI,” said Vic Grizzle, President and CEO of AWI. “Sales growth of 6%, adjusted EBITDA growth of 14% and $244 million of adjusted free cash flow were financial highlights. We also delivered on the 2019 sales and EBITDA targets we set back in 2017 in connection with the announced sale of our EMEA and Asia-Pacific businesses. This reflects terrific execution by our teams to right-size to a leading America’s-focused business and change our trajectory of growth.”

Market Outlook and 2020 Guidance

“I’m pleased that we were once again able to deliver results consistent with our value creation model,” said Brian MacNeal, CFO of AWI. “As we look ahead to 2020, we expect a continuation of the market conditions we saw in 2019. We again expect to grow sales in the high-single digit range, expand adjusted EBITDA margins and generate sector leading adjusted free cash flow of more than 25% of sales.”

For earnings history and earnings-related data on Armstrong World (AWI) click here.