By Dean Seal
Shares of JELD-WEN Holding and Builders FirstSource tumbled after the former company cut its annual revenue guidance and the latter company warned of near-term headwinds.
JELD-WEN's stock was down 24% at $14.40 in early trading. Shares of Builders FirstSource ewre down 17% at $166.03.
After the bell on Monday, JELD-WEN said it now expects $3.9 billion to $4.1 billion in revenue this year, instead of $4 billion to $4.3 billion, citing a softening macroeconomic environment.
The doormaker swung to a first-quarter loss of $27.7 million, or 32 cents a share, compared with a profit of $15.1 million, or 18 cents a share, in the same quarter a year ago.
Revenue fell 11% to $959.1 million, missing analyst projections for $966.9 million, according to FactSet.
CEO William Chirstensen said the company faced demand challenges during the quarter, with core revenue down 12% from lower volumes.
Dave Rush, chief executive of Builders FirstSource, also pointed to headwinds in the first quarter, including a weakening market for multi-family building services and higher mortgage rates impacting affordability.
Rush said on a call with analysts that the company expects the multifamily segment to progressively normalize over the course of the year. He also said that some early momentum in the single-family segment has slowed as expectations for interest rate cuts this year cool.
The building materials supplier still maintained guidance for $17.5 billion to $18.5 billion in sales this year. First quarter revenue and adjusted earnings topped analyst expectations, according to FactSet.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 07, 2024 11:53 ET (15:53 GMT)
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