Armstrong Flooring Inc. (AFI) stock is slumping 0.90% on Thursday. The Armstrong World Industries spinoff, which became an independent entity in April 2016, is slated to present their Q3 2017 earnings report on November 6, 2017.
The flooring company’s stock is up 1.25% in the trailing 30-day period, down over 13.93% in the trailing 90-day period and 13.35% in the past year. The company’s stock remains up 16.60% since going public a little over a year ago.
Armstrong’s stock is down primarily due to economic factors in the past month.
The company’s most newsworthy announcement, outside of their conference call announcement, is that the company plans to donate 250,000 square feet of flooring to help people rebuild after Hurricane Harvey.
The company’s flooring products have been donated through Good360, a nonprofit that matches product donations. Good360 offers products through the entire disaster recovery process.
Armstrong announced a new Chief Financial Officer (CFO) in August. The company welcomed Ronald D. Ford who took over as the company’s CFO and Senior Vice President on September 1, 2017. Ford brings a wealth of experience to the company and will play a major role in the company’s strategic efforts going forward.
Ford will help the company continue with their innovative approach and design new products to meet consumer demand. New product offerings, such as cable management access flooring for wires, are an opportunity for the company to expand their market reach.
The company’s previous earnings report is an indicator of what investors can expect from the company’s upcoming earnings.
Armstrong reported $5.4 million in second-quarter earnings in August. The company had a profit of $0.20 per share with $0.26 earnings per share when adjusted for one-time costs and gains.
Revenue in the second quarter reached $297.3 million.
The company’s CEO, Don Maier, stated “second quarter 2017 results were disappointing to us and fell short of our expectations.” The company noted that they expect to have continued challenges through the end of the year.
Legacy product categories experienced soft demand. LVT sales grew at a double-digit rate to help Armstrong Flooring Inc. offset some of their declines. The company’s third-quarter sales are expected to be impacted, pushing the company’s stock lower to end the year.
Armstrong Flooring is working to realign the company’s products and boost sales through organizational realignment. The realignment is expected to generate savings of $6 million to $7 million. The company also purchased Mannington’s VCT assets and plans to improve their cost position with the closing of two wood flooring facilities.
The company’s year-over-year sales are expected to decline in the third-quarter. The company’s net sales fell from $323.7 million to $297.3 million year-over-year in the second-quarter.