James Hardie Industries PLC (NYSE:JHX) stock is trading lower Wednesday following worse-than-expected first-quarter financial results on Tuesday after the market closed.
What To Know: The company reported adjusted earnings per share of 29 cents, missing the consensus estimate of 31 cents. In addition, it reported sales of $899.90 million, missing the consensus estimate of $935.16 million.
CEO Aaron Erter said results reflected "an expected normalization of channel inventories" amid moderating growth expectations, adding that the company remains focused on delivering long-term value through execution and customer-driven strategies.
The quarter also marked the closing of James Hardie's acquisition of AZEK, which Erter said "again exceeded guidance" with mid-single-digit growth in Deck, Rail & Accessories sales. He noted early synergy wins and positive customer feedback from the integration.
Following the earnings report, Baird analyst Timothy Wojs maintained an Outperform rating on James Hardie and lowered the price target from $32 to $25.
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JHX Price Action: At the time of writing, James Hardie stock is trading 35.90% lower at $18.23, according to data from Benzinga Pro.
Image: This illustration was generated using artificial intelligence via Midjourney.
