Q3 Earnings Highs And Lows: JELD-WEN (NYSE:JELD) Vs The Rest Of The Home Construction Materials Stocks

As the earnings season for home construction materials stocks comes to a close, it's time to take a step back and assess the performance of these companies. While some have shone, others have struggled to meet expectations. Let's take a closer look at how JELD-WEN (NYSE:JELD) fared compared to its peers in the third quarter.

JELD-WEN's Mixed Performance

JELD-WEN, a leading manufacturer of doors, windows, and other related building products, reported mixed results for the third quarter. The company's net revenue from continuing operations decreased by 5.5% to $1,077.0 million, driven by a 7% decline in Core Revenue. This decline was primarily due to a 10% lower volume/mix, partially offset by a 3% increase in price realization.

Net income from continuing operations improved significantly to $16.9 million, or $0.20 per share, compared to a net loss of $45.1 million, or $0.53 per share, in the same quarter last year. Operating income margin improved to 4.5% from (1.5%) in the prior year's third quarter. Adjusted EPS from continuing operations increased to $0.53 from $0.37 in the same quarter last year.

However, JELD-WEN's full-year revenue guidance missed analysts' expectations, leading to a significant decline in the stock price. The company's shares are down 40.9% since the results and currently trade at $8.36.



Comparing JELD-WEN to Its Peers

To better understand JELD-WEN's performance, let's compare it to some of its peers in the home construction materials sector:

1. Fortune Brands (NYSE:FBIN): Fortune Brands reported revenues of $1.16 billion, down 8.4% year on year. This print fell short of analysts' expectations by 6.9%. The company's organic revenue and EPS estimates also missed analysts' expectations. Fortune Brands' stock is down 17.1% since reporting and currently trades at $69.84.
2. Trex (NYSE:TREX): Trex reported revenues of $233.7 million, down 23.1% year on year, outperforming analysts' expectations by 3.7%. The business had an exceptional quarter with an impressive beat of analysts' EBITDA estimates. Trex's stock is up 6.9% since reporting and currently trades at $71.11.
3. Quanex (NYSE:NX): Quanex reported revenues of $492.2 million, up 66.6% year on year, in line with analysts' expectations. The company also put up an impressive beat of analysts' EBITDA estimates. Quanex's stock is down 13% since reporting and currently trades at $25.18.
4. Simpson (NYSE:SSD): Simpson reported revenues of $587.2 million, up 1.2% year on year, meeting analysts' expectations. However, the company's EPS and EBITDA estimates missed analysts' expectations. Simpson's stock is down 9.9% since reporting and currently trades at $167.80.



Conclusion

JELD-WEN's mixed performance in the third quarter highlights the challenges faced by home construction materials stocks in the current macroeconomic environment. While the company managed to improve its net income and operating margin, its full-year revenue guidance missed analysts' expectations, leading to a significant decline in its stock price.

Compared to its peers, JELD-WEN's performance was not as strong as Trex's or Quanex's, but it was better than Fortune Brands' and Simpson's. As the market continues to navigate uncertain operating conditions, investors should closely monitor the performance of these companies and their ability to adapt to changing market dynamics.

In the end, the key takeaway is that the home construction materials sector is not a one-size-fits-all market. Each company faces unique challenges and opportunities, and investors should carefully evaluate each company's performance and prospects before making investment decisions.