JELD - Here's Why Shares in this Housing Related Stock Slumped in May
2024-06-06 08:32:19 ET
Shares in exterior doors, windows, and building products company Jeld-Wen (NYSE: JELD) crashed by 24.3% in May, according to data provided by S&P Global Market Intelligence . The decline came after the company released disappointing first-quarter earnings in early May.
In response to the difficult first quarter and challenging conditions in the housing market, management lowered its full-year revenue and adjusted earnings before interest, depreciation, and amortization ( EBITDA ) guidance. Instead of a full-year core revenue decline of flat to 7%, management now expects revenue to decline between 5% and 9%. Furthermore, instead of guidance for full-year adjusted EBITDA in the range of $370 million to $420 million, management now expects adjusted EBITDA in the range of $340 million to $380 million.
The downgrade to expectations comes from weak repair and remodel markets in North America and Europe. According to CFO Julie Albrecht on the earnings call , management lowered volume expectations in the former due to interest rate uncertainty and in the latter due to "ongoing macroeconomic and geopolitical challenges."
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Here's Why Shares in this Housing Related Stock Slumped in May