$JELD - Open your Doors!

Research & Analysis Earnings
1

JELD engages in the manufacture and sale of doors, windows, and related products. It designs, produces, and distributes interior and exterior doors, wood, vinyl, aluminum windows, and related products for construction, repair, and remodeling of residential homes and non-residential buildings. It operates through the following geographical segments: North America, Europe and Australasia.

I came across this stock browsing the interwebs and thought about all the new homes or housing developments being built. Every, if not all, houses have windows and doors, can’t argue that. 2021 earnings seem pretty solid, and they beat expected revenue by 5.64% last quarter, but missed EPS by -11.62%.

image
image1284×1492 145 KB

JELD highlights of last quarter:
( JELD-WEN Holding, Inc. - JELD-WEN Reports Accelerated Revenue Growth with Fourth Quarter 2021 Results; Establishes 2022 Outlook with Strong Growth and Margin Expansion )

  • Net revenue increased 11.8% for the fourth quarter driven by improvement in pricing and volume/mix
  • Core revenue grew 10% in 2021, with growth in each segment
  • Adjusted EBITDA increased 4.2% for the full year to $465.1 million
  • Repurchased 11.6 million shares in 2021 or approximately 11.5% of total shares outstanding at year-end 2020
  • Issued 2022 outlook including revenue growth between 7% and 10% and adjusted EBITDA of $520 million to $565 million

While browsing I found a company had recently purchased 11M shares between Q4 2021 and now.

image
image1875×243 44.5 KB

The company purchasing is Turtle Creek Asset Management Inc. ( Home - Turtle Creek Asset Management ) They state ‘We were founded on a novel idea—a new way to invest in public equities over the long term—with a focus on seeking to lower risk.’ The purchase comes several weeks before their JELD earnings.

Earnings for JELD are May 2nd @ 8am ( JELD-WEN Holding, Inc. - JELD-WEN To Release First Quarter 2022 Earnings And Host Conference Call on May 2 )

I’m still looking up info, but found it interesting enough to possibly watch for Monday.

3 Likes
2

It’s interesting how they flip flop between missing rev and beating EPS and then the opposite next quarter.

I could see EPS beating, due to demand, but rev may be down if they are having supply constraints.

3

I agree. They missed revenue in Q3 last year by less than 1% which I don’t see as a big negative.

image
image1284×786 75.6 KB

Where they sit for supply chain issues I’m not quite sure, but the housing market just continues to build new homes and they’re getting windows from somewhere.
I was planning to pick up one call today to not put all my eggs in one basket. Probably a 5/20 22.5c or 25c and hold into earnings.

4

With interest rates rising, that’s a headwind for new construction (we’re already seeing that) and likely for JELD as well.

5

Today I grabbed calls with my limited BP until funds settle more.

5/20 25c @ 0.15
5/20 30c @ 0.05

I’m interested to see where this goes. It’ll be a good test of my DD and if I need to further evaluate how I go about it.

2 Likes
6

JELD-WEN Holding (NYSE:JELD) reported quarterly earnings of $0.16 per share which missed the analyst consensus estimate of $0.33 by 51.52 percent. This is a 40.74 percent decrease over earnings of $0.27 per share from the same period last year. The company reported quarterly sales of $1.17 billion which missed the analyst consensus estimate of $1.20 billion by 2.42 percent. This is a 7.20 percent increase over sales of $1.09 billion the same period last year.

2 Likes