JELD-WEN beats by $0.03, reports revs in-line; guides FY24 revs below consensus
- Reports Q1 (Mar) earnings of $0.21 per share, excluding non-recurring items, $0.03 better than the FactSet Consensus of $0.18; revenues fell 11.2% year/year to $959.1 mln vs the $965.92 mln FactSet Consensus.
- Co issues lowered guidance for FY24, sees FY24 revs of $3.9-4.1 bln, down from $4.0-4.3 bln, vs. $4.15 bln FactSet Consensus.
- Co is lowering its 2024 revenue guidance to reflect Core Revenues that are down 5% to 9% compared to 2023. The Company's new guidance range reflects a softening macro-environment across the company's portfolio of products and geographies in North America and Europe.
JELD-WEN -24.3% shares shatter today after the window and door maker lowers its FY24 revenue outlook to compensate for a softening macroeconomic environment
- JELD's initial FY24 guidance outlined last quarter was already mild, underscoring volume mix headwinds across the U.S. and Europe. Management remarked in February that economic conditions would remain difficult in FY24.
- Nevertheless, after a few weeks of sideways trading following JELD's cautious remarks, investors sent shares to fresh one-year highs. Against this backdrop, JELD needed to deliver positive developments in Q1.
- Unfortunately, the situation deteriorated over the past three months. During Q1, volume/mix fell by 12% yr/yr in the quarter, worse than the 10% drop last quarter. Management stated that elevated interest rates continue to produce uncertainty, leading to sluggish new single-family home construction and persistently challenging repair & remodel (R&R) activity.
- JELD has been taking action in recent months, closing two North American window facilities in April to improve future financial performance. The company has also been stepping up its investments connected to its ongoing transformation, such as increasing automation and production processes.
- Nevertheless, by lowering its guidance, reflecting continued problems across North America and Europe, JELD is amid a considerable sell-off, with shares hitting mid-November levels.
