This Fund Sold $6 Million in Armstrong Stock Despite Strong Earnings — Here's the Takeaway for Long-Term Holders

Core Insights - 1060 Capital Management has fully exited its position in Armstrong World Industries, liquidating 35,000 shares valued at approximately $5.7 million, which represented 12% of the fund's reportable assets [1][2]. Company Performance - Armstrong World Industries reported a revenue of $1.6 billion and a net income of $305.4 million for the trailing twelve months (TTM) [3]. - The company's shares were priced at $182.66, reflecting a 19% increase over the past year, outperforming the S&P 500, which rose by 13% during the same period [2][3]. - In the third quarter, Armstrong's net sales increased by 10% to $425 million, driven by 18% growth in architectural specialties and 6% growth in mineral fiber segments [6]. - Adjusted earnings per share (EPS) rose by 13% to $2.05, and year-to-date adjusted free cash flow surged by 22% [8]. Business Overview - Armstrong World Industries is a leading provider of ceiling and wall systems, focusing on product innovation and a diverse portfolio that serves both commercial and residential construction markets [4]. - The company generates income through sales to various distribution channels, including distributors, contractors, wholesalers, and retailers [4][12].