Here's Why Shares in this Housing Related Stock Slumped in May

Shares in exterior doors, windows, and building products company Jeld-Wen (NYSE: JELD) crashed by 24.3% in May, according to data provided by S&P Global Market Intelligence. The decline came after the company released disappointing first-quarter earnings in early May.In response to the difficult first quarter and challenging conditions in the housing market, management lowered its full-year revenue and adjusted earnings before interest, depreciation, and amortization (EBITDA) guidance. Instead of a full-year core revenue decline of flat to 7%, management now expects revenue to decline between 5% and 9%. Furthermore, instead of guidance for full-year adjusted EBITDA in the range of $370 million to $420 million, management now expects adjusted EBITDA in the range of $340 million to $380 million.The downgrade to expectations comes from weak repair and remodel markets in North America and Europe. According to CFO Julie Albrecht on the earnings call, management lowered volume expectations in the former due to interest rate uncertainty and in the latter due to "ongoing macroeconomic and geopolitical challenges."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Zum vollständigen Artikel