What Happened?
Shares of building products manufacturer JELD-WEN (NYSE:JELD) fell 9.1% in the afternoon session after the stock's negative momentum continued as the company's recent earnings report showed a significant miss on both profit and revenue. The company posted a loss of $0.20 per share for the quarter, which was a stark contrast to the expected profit of $0.18 per share. This marked a substantial miss of $0.38. Revenue also fell short, coming in at $809.48 million, below analysts' expectations of $823.58 million. The weak financial results pointed to challenges for the business, and the stock's decline suggested continued investor concern following the update.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy JELD-WEN? Access our full analysis report here.
What Is The Market Telling Us
JELD-WEN’s shares are extremely volatile and have had 40 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 4 days ago when the stock dropped 5.9% on the news that 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.
JELD-WEN is down 71.1% since the beginning of the year, and at $2.33 per share, it is trading 79.3% 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 $104.12.
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