In Temple, Georgia, Janus International Group, Inc. (NYSE:JBI) released its third-quarter earnings report, which did not meet analyst predictions and resulted in a reduction of its full-year forecast due to macroeconomic challenges and project delays affecting its performance.
The company, known for its building products, reported an adjusted earnings per share of $0.11 for the third quarter, falling short of the analyst consensus of $0.21. Revenue was reported at $230.1 million, which was below the estimated $248.21 million and marked a 17.9% decrease from the previous year’s $280.1 million.
CEO Ramey Jackson commented on the quarter’s performance, noting ongoing pressures from macroeconomic factors, interest rate uncertainties, and project delays.
The self-storage segment, the largest for Janus, saw a revenue decline of 22.4% year-over-year, totaling $149.1 million. Meanwhile, commercial and other revenues decreased by 7.8% to $81.0 million.
Janus revised its full-year 2024 guidance, now projecting revenue between $910 million and $925 million, which falls below the previous outlook and the $1005 million consensus. The company is forecasting an adjusted EBITDA ranging from $195 million to $205 million.
In response to the current market conditions, Janus introduced a structural cost reduction plan aimed at streamlining its workforce and cutting expenses. This strategy is anticipated to result in $8 million to $12 million in annual pre-tax savings.
Despite these immediate difficulties, Jackson expressed confidence in Janus International Group’s long-term potential, highlighting the strength of the self-storage industry’s fundamentals and strategic moves such as the recent launch of the Nokē Ion product.
The quarter concluded with Janus holding $102.1 million in cash and maintaining a net leverage ratio of 2.0x. Additionally, the company repurchased 4.3 million shares for $45.5 million during the third quarter.