JELD-WEN (JELD) Earnings: What to Expect as Q4 Results Approach

As the market awaits JELD-WEN Holding's (JELD) fourth quarter 2024 earnings report, slated for Monday, February 17, investors are eager to understand the company's performance and the potential impact on its stock price. JELD-WEN, a leading global manufacturer of building products, has faced challenges in recent quarters, but the company has also demonstrated resilience and a commitment to improving its financial performance.

In the fourth quarter of 2023, JELD-WEN reported a net loss from continuing operations of $(22.6) million, or $(0.27) per share, compared to net income from continuing operations of $25.9 million, or $0.31 per share, during the same quarter a year ago. The decline was primarily driven by discrete tax charges of $29.6 million, which relate to a valuation allowance. However, adjusted net income from continuing operations for the fourth quarter increased by $2.8 million, to $31.7 million, compared to $28.9 million in the same period last year.



For the full year 2023, JELD-WEN's net income from continuing operations was $25.2 million, or $0.29 per share, compared to $12.2 million, or $0.14 per share, in the prior year. Adjusted EPS from continuing operations was $1.59, compared to $1.33 a year ago. The company's adjusted EBITDA from continuing operations increased by $31.6 million to $380.4 million, compared to $348.8 million a year ago. Adjusted EBITDA margin from continuing operations increased by 110 basis points year-over-year to 8.8%.

As we approach JELD-WEN's Q4 earnings report, investors should pay close attention to several key factors that have driven the company's earnings performance in recent quarters:

1. Volume/Mix: JELD-WEN's earnings have been impacted by changes in volume/mix, with a 16% decline in volume/mix contributing to a 15% decrease in Core Revenue in the fourth quarter of 2023. Investors should monitor the company's volume/mix trends and their impact on revenue growth.
2. Price Realization: Despite the decline in volume/mix, JELD-WEN managed to increase price realization by 5% in 2023. This price increase helped offset some of the revenue loss from the volume decline. Investors should assess the company's pricing power and its ability to maintain or improve price realization in the future.
3. Operating Costs: JELD-WEN has been focusing on reducing operating costs to improve profitability. In the fourth quarter of 2023, the company's operating income margin increased to 0.7% from 2.0% in the same quarter a year ago. Investors should evaluate the company's cost-cutting efforts and their impact on operating income margin.
4. Discrete Tax Charges: In the fourth quarter of 2023, JELD-WEN incurred discrete tax charges of $29.6 million, which primarily relate to a valuation allowance. Investors should consider the impact of these charges on the company's net income and earnings per share, as well as the potential for future discrete tax charges.

Analysts' expectations for JELD-WEN's earnings have evolved over time, reflecting changes in the company's performance and market conditions. As of February 14, 2025, the average rating for JELD stock is "Hold," with a 12-month stock price forecast of $12.75, indicating a potential increase of 45.05% from the latest price. This average price target is a decrease of 13.7% from the previous average target, suggesting a negative shift in analysts' expectations.

In the recent past, analysts have made adjustments to their ratings and price targets for JELD-WEN. For example, Susan Maklari from Goldman Sachs lowered her rating from Neutral to Sell, while Mike Dahl from RBC Capital Markets lowered his rating from Underperform to Sell. These changes reflect a more pessimistic outlook on the company's prospects.

In contrast, Philip Ng from Jefferies raised his rating from Hold to Buy, indicating a more optimistic view on the company's future performance. However, this positive sentiment is outweighed by the majority of analysts who have lowered their ratings or maintained a neutral stance.

As we await JELD-WEN's Q4 earnings report, investors should closely monitor the company's performance and the market's reaction to its results. The upcoming earnings report will provide valuable insights into the company's financial health and its prospects for future growth. By staying informed and analyzing the key factors that drive JELD-WEN's earnings performance, investors can make more informed decisions about the company's stock and its potential for long-term success.