What Happened?
Shares of building products manufacturer JELD-WEN (NYSE: JELD) fell 29.2% in the morning session after 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.
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 42 moves greater than 5% over the last year. But moves this big are rare even for JELD-WEN and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.4% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.
JELD-WEN is down 61.9% since the beginning of the year, and at $3.08 per share, it is trading 78.2% below its 52-week high of $14.13 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 $124.09.
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