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JELD-WEN (NYSE:JELD) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

JELD-WEN Holding, Inc. (NYSE:JELD) is scheduled to report Q3 earnings results before markets open for trading on November 3, 2020.

The company is expected to report earnings of $0.44/share on revenue of $1.093 billion. The consensus earnings per share (EPS) of $0.44/share is based on a poll of 13 analysts and represents a growth in eps of 68.9% over the same quarter last year, when the company reported earnings of $0.26/share.

The revenue forecast of $1.093 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth in revenue of 0.1%. Last year the company reported $1.092 billion in revenue for the quarter.

Expected to report EPS growth of 68.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,092.76 $1,092.00 0.1%
EPS $0.44 $0.26 68.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, and missed expectations 5 quarters.

What are your expectations from JELD-WEN Holding, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.20 $0.47 140.8% Beat
Q1, 2020 $0.10 $0.13 34.0% Beat
Q4, 2019 $0.28 $0.24 −13.7% Missed
Q3, 2019 $0.37 $0.26 −30.0% Missed
Q2, 2019 $0.51 $0.45 −11.9% Missed
Q1, 2019 $0.25 $0.23 −9.2% Missed
Q4, 2018 $0.35 $0.41 17.8% Beat
Q3, 2018 $0.52 $0.40 −22.5% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 27, 2020, the stock price reacted by increasing 14.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $20.34 $23.25 14.3% Increase
May 5, 2020 $12.21 $11.41 −6.6% Decline
February 18, 2020 $25.26 $22.19 −12.2% Decline
November 6, 2019 $18.55 $20.20 8.9% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.88, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.88 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

JELD-WEN Holding, Inc. is currently trading at $21.19/share, down −3.2% for the day. The company is trading at approximately 77.6% of its 52-week high of $27.32/share. The company’s stock price is down −8.9% since the last earnings report and down −9.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 38.89 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:JELD Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 44.73 and a forward P/E multiple of 15.94.

JELD-WEN Holding, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.57. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 27, 2020
Stock Price (Current) $21.19
P/E Ratio 44.7x
P/E Ratio (Fwd) 15.9x
PEG Ratio −0.9
Total Debt / Total Capital 47.3%
Levered Free Cash Flow $203.1 million
EV / EBITDA 11.2x

Finbox

JELD-WEN Holding, Inc. is a mid-cap stock with a market capitalization of $2.201 billion and a total enterprise value of $3.723 billion. The company operates in the Industrials sector and the Building Products industry.

JELD-WEN Holding, Inc. designs, manufactures, and sells doors and windows primarily in North America, Europe, and Australasia. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; and wood, vinyl, aluminum, and wood composite windows. It also provides other ancillary products and services, such as shower enclosures and wardrobes, moldings, trim boards, lumber, cutstocks, glass, staircases, hardware and locks, cabinets, and screens, as well as molded door skins, and miscellaneous installation and other services. The company markets its products under the JELD-WEN brand; and various regional brands, such as Swedoor, DANA, Corinthian, Stegbar, and Trend. Its customers include wholesale distributors and retailers, as well as individual contractors and consumers. The company was founded in 1960 and is headquartered in Charlotte, North Carolina.

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