Why ADI Global Distribution Stock Plunged This Week

A $659 million goodwill write-down and a lowered full-year profit outlook sent ADI Global Distribution (NYSE:ADIG) tumbling this week.

The shares were down 46.4% from Friday, Nov. 6's close to Thursday, Nov. 12's close, according to data from S&P Global Market Intelligence. Over the same period, the S&P 500 gained 2.9%, and the Nasdaq-100 was up 4.8%.

Management reported a third-quarter net loss of $655 million on Thursday, Nov. 12, after recording a $659 million non-cash goodwill write-down due to persistent weakness in residential construction. Top-line revenue increased 9% year over year to $1.31 billion, topping Wall Street consensus estimates of $1.27 billion. However, profitability shrank as a larger share of orders shifted to lower-margin national accounts.

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