Jeld Wen Holding Inc (NYSE: ) shares fell to a 52-week low, touching the $7.83 price level, as investors react to a challenging market environment. With a market capitalization of $670 million, the company’s technical indicators from InvestingPro suggest that the stock is in oversold territory, potentially presenting an opportunity for value investors. The significant drop reflects a broader trend for the company, whose stock price has plummeted -55.94% over the past year, with revenue down -12.58%. This sharp decline highlights the obstacles JELD has faced, including industry-wide pressures and potentially company-specific issues. Despite these challenges, InvestingPro analysis shows strong liquidity with a current ratio of 2.03, and analysts expect net profit growth this year. Investors are closely monitoring the company’s performance and strategic initiatives as it navigates these turbulent market conditions. For an in-depth look at JELD’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, JELD-WEN Holding, Inc. reported a decline in sales and earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter. The company’s third-quarter revenue fell to $935 million, a 13% year-over-year decrease, and adjusted EBITDA fell to $82 million. This decline is attributed to weaker demand, particularly in North America and Europe, and a shift in consumer preferences towards lower-priced products. JELD-WEN also disclosed the loss of its stock business with a large Midwestern retailer, which is projected to have an annual sales impact of $75 million to $100 million.
The company significantly lowered its FY24 adjusted EBITDA forecast, now expecting it to be between $265 million and $280 million. In response to these challenges, JELD-WEN implements cost reduction initiatives and focuses on operational efficiency and customer engagement. The company revised its 2024 revenue guidance downward to $3.7 billion to $3.75 billion and anticipates $115 million in cost savings and $125 million in operating cash flow for fiscal 2024.
Additionally, JELD-WEN announced the sale of its Towanda, Pennsylvania business to Woodgrain Inc. for approximately 115 million dollars. The sale is expected to reduce JELD-WEN’s annual revenue by $150 million to $200 million and EBITDA by $25 million to $50 million. Despite the significant changes, the company expects its EBITDA to grow by an additional $100 million in 2025 due to its transformation efforts. These are recent developments in JELD-WEN’s financial status and strategic direction.
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