Jeld-Wen Shares Down 11% After Outlook Cut, CFO Departs

(RTTNews) - Shares of Jeld-Wen Holding Inc. (JELD) dropped 11% in the extended session Monday after the door and window maker announced the appointment of a new chief financial officer and also cut its outlook.

Jeld-Wen announced that John Linker has been promoted to CFO effective November 8, 2018, replacing Brooks Mallard, who will leave the company the same day to pursue other career interests.

Linker currently serves as senior vice president, corporate development and investor relations.

For the third quarter Jeld-Wen expects revenues of $1.130 billion to $1.140 billion, an increase of 14.0% to 15.0%. Analysts polled by Thomson Reuters currently estimate revenues of $1.16 billion. The company now expects adjusted EBITDA of $130 million to $135 million, below its previous outlook of $143 million to $153 million.

"While disappointed in our preliminary third quarter results, I am encouraged with the progress we are making across all aspects of the business," said Gary Michel, president and chief executive officer. "With our service issues behind us, we are working diligently to strengthen relationships with our key customers, while establishing new opportunities for our products, and increasing the speed with which we are deploying the tools of our business operating system, the JELD-WEN Excellence Model or JEM."

For the full year, Jeld-Wen now expects net revenue growth of 15% to 17%, compared to prior expectations of 16% to 18% and adjusted EBITDA of $455 million to $470 million, compared to prior outlook of $500 million to $520 million. Analysts currently estimate revenue growth of 17.40%.

JELD closed Monday's trading at $21.31, down $0.04 or 0.19%, on the Nasdaq. The stock further dropped $2.37 or 11.12% in the after-hours trade.