JELD Earnings Prediction
The chart below shows how JELD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, JELD sees a +1.05% change in stock price 10 days leading up to the earnings, and a -4.27% change 10 days following the report. On the earnings day itself, the stock moves by -3.25%. This data can give you a slight idea of what to expect for the next quarter's release.
JELD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
895.73M
-12.27%
-4.17%
Gross Margin
16.35%
-12.89%
-15.02%
Operating Margin
0.49%
-78.41%
-90.50%
Net Margin
-7.64%
244.14%
-2.18%
EPS
-0.81
-97.56%
-7.95%
No Data Available
JELD Earnings Analysis
JELD-WEN Holding Inc Corporation (JELD.N) Earnings Conference Call
Positive
Transformation Benefits Achieved: The company delivered approximately $115 million of transformation benefits in 2024, demonstrating effective cost management and operational improvements.
Interior Door Market Stability: Despite a challenging market, the interior door business remained relatively stable, indicating a strong market position in that segment.
Adjusted EBITDA Projections: Adjusted EBITDA improvements are expected to continue, with a projected additional $100 million in annualized adjusted EBITDA improvements for 2025, showcasing ongoing transformation efforts.
Network Optimization Benefits: The company is implementing a comprehensive program to optimize its North American network, which is expected to generate an additional $60 million or more in benefits once fully implemented.
EBITDA Margin Improvement: Productivity improvements in Europe have led to an increase in adjusted EBITDA margin to 6.5%, despite lower volumes, indicating effective management in that region.
Customer Partnership Enhancement: The company is focused on reestablishing strong partnerships with customers and improving service levels, which is expected to help regain lost market share.
Automation and Efficiency Investment: Investment in automation and efficiency gains is a priority, which is expected to enhance productivity and reduce costs in the long term.
Negative
Revenue Decline Analysis: Revenue declined 12% year-over-year in Q4 2024, driven by lower core revenues and a shift towards more affordable options.
Q4 Adjusted EBITDA Decline: Adjusted EBITDA for Q4 was $40 million, a $47 million decline from the prior year, resulting in an adjusted EBITDA margin of 4.5%.
Free Cash Flow Strain: Free cash flow in Q4 was a use of $28 million, indicating financial strain amid capital investments.
Increased Financial Risk: Net debt leverage ratio increased to 3.8 times, exceeding the target range of 2 to 2.5 times, indicating higher financial risk.
North America Revenue Decline: North America segment revenue declined 14% year-over-year, primarily due to lower volume and mix, with adjusted EBITDA dropping from $94 million to $42 million.
Core Revenue Decline: In Europe, core revenues declined 6% year-over-year, with a 7% decrease in volume and mix, indicating market challenges.
Revenue Decline Analysis: Full-year revenue also declined 12% year-over-year, reflecting ongoing impacts of lower volumes and mix throughout the year.
Financial Headwinds Overview: The company faced approximately $160 million in headwinds from lower volume and mix, alongside an additional $40 million decline from negative price cost and productivity challenges.
Market Outlook Decline: The market outlook for 2025 indicates potential further declines in North America, with expectations of low to mid-single-digit declines in new construction and repair and remodel demand.
Increased Corporate Expenses: Corporate expenses are expected to be higher in 2025 due to the reinstatement of variable incentives and the absence of certain one-time benefits.
JELD FAQs
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JELD Earning Call Sentiment
JELD-WEN Holding, Inc. (NYSE:JELD) Q4 2024 Earnings Call Transcript
JELD.N
-3.73%Positive
The earnings call indicates a challenging financial landscape with declining revenues and EBITDA, increased debt leverage, and downward-revised guidance for 2024. Despite cost-saving initiatives and transformation projects, the weak financial performance and cautious outlook, especially in key markets like North America, suggest a negative sentiment. The Q&A highlights management's uncertainty in addressing cost challenges and inflation, further supporting a negative outlook. Given the small-cap status, the stock is likely to react more strongly to these negative factors, resulting in a predicted stock price movement of -2% to -8% over the next two weeks.
