Why is James Hardie Industries stock sliding today?
Investing.com ·
Why is James Hardie Industries stock sliding today?
Investing.com -- James Hardie Industries PLC ADR stock is sliding 1.7% in pre-open trading today, reaching $28.17, after the building-materials company delivered a fiscal second-quarter earnings report that beat on the headline numbers but rattled investors with a revenue outlook that came in well below what analysts had expected. Adjusted earnings per share of $0.42 topped the consensus estimate of $0.39, and revenue from continuing operations of approximately $1.43 billion rose 24% year-over-year and exceeded estimates — yet the market’s focus quickly shifted to the guidance, where both the third-quarter and full-year revenue midpoints fell short of Wall Street forecasts by a meaningful margin. Management also revised its full-year housing market assumption to a mid-single-digit decline, a more pessimistic stance than its prior low-single-digit estimate, citing further deterioration in new construction activity.
On the analyst front, several firms moved swiftly to trim their price targets in response to the weaker outlook. Stephens held its Overweight rating but lowered its target to $33 from $34, while Truist maintained its Buy rating and reduced its target to $37 from $40; Citi went further, downgrading the stock to Neutral from Buy. The broad analyst community remains net positive on the name, but the coordinated round of target cuts is reinforcing selling pressure heading into the regular session.
The macro backdrop offers little relief for a housing-exposed stock on a day when the broader market is sending mixed signals. The S&P 500 is marginally higher and the Nasdaq is posting solid gains, while the Dow Jones is in the red — a divergent session that provides no sector-wide tailwind for building materials. Management’s own commentary underscored the challenging environment, noting that new home completions and sales are both tracking down double digits and that builder confidence and affordability remain persistent concerns.
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