What Happened?
Shares of building products manufacturer JELD-WEN (NYSE: JELD) fell 5.9% in the morning session after the stock's decline continued as the company reported a significant drop in revenue amid deteriorating market demand, and an analyst lowered their price target on the stock. JELD-WEN's quarterly revenue was $809 million, with core revenue down 10% compared to the same period in the previous year. The company noted it was experiencing a notable deterioration in market demand, particularly in North America. In response to these challenging conditions, JELD-WEN implemented an 11% reduction in its North American and corporate workforce. Adding to the negative sentiment, Barclays analyst Matthew Bouley lowered the firm's price target on the stock by 40%, from $5.00 to $3.00, while maintaining an 'Equal-Weight' rating.
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What Is The Market Telling Us
JELD-WEN’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 29.2% on the news that the company reported weak third-quarter results and lowered its full-year financial guidance. The door and window maker posted revenue of $809.5 million, a 13.4% drop year on year, falling short of analyst expectations. JELD-WEN also reported an adjusted loss of $0.20 per share, a significant miss compared to analyst estimates and a sharp downturn from the $0.32 per share profit it earned a year ago. Looking ahead, the company slashed its full-year revenue forecast by 4.5% to a midpoint of $3.15 billion and provided EBITDA guidance that was well below Wall Street's estimates. The combination of missing current-quarter expectations and cutting its future outlook led to the sharp decline in the stock price.
JELD-WEN is down 67.5% since the beginning of the year, and at $2.63 per share, it is trading 76.8% below its 52-week high of $11.30 from November 2024. Investors who bought $1,000 worth of JELD-WEN’s shares 5 years ago would now be looking at an investment worth $116.25.
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