James Hardie top loser on ASX 200 on lower fiscal 2025 earnings outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2024
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Source: reuters
- James Hardie Industries Forecast: The world's largest fibre cement maker, James Hardie Industries, predicts lower profit for fiscal 2025 due to high interest rates affecting housing demand and increased marketing expenses.
- Financial Outlook: Adjusted net income for fiscal 2025 is expected to be between $630 million and $700 million, compared to $707.5 million in fiscal 2024.
- Market Response: Shares of James Hardie Industries dropped by 9.8% following the profit forecast, marking their biggest intraday decline since November 8, 2022.
- Challenges in North American Market: High interest rates and inflation have impacted the North American housing sector, which accounts for 74% of the company's global sales.
- Analyst Concerns: Analysts at Citi noted concerns over the firm's rising selling, general, and administrative expenses, which could affect profitability in fiscal 2025.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
