Why Ply Gem's Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of building products maker Ply Gem (NYSE: PGEM  ) fell 19% today after reporting earnings.

So what: The company reported a 19.8% rise in sales to $368.1 million, which did come in slightly ahead of estimates. But bet loss was $50.9 million, or $0.90 per share, and even earnings from operations fell $6.7 million to $24.2 million.  

Now what: Weather was blamed for some of the disappointment and higher costs in anticipation of demand growth has hurt the bottom line. It's that decline in gross margin that has me most concerned and would keep me out of the stock today. Until management proves it can control costs the company won't live up to its $1 billion valuation, especially when you consider its $828 million debt load.

Interested in more info on Ply Gem? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2593596, ~/Articles/ArticleHandler.aspx, 9/29/2016 3:03:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,195.40 -143.84 -0.78%
S&P 500 2,159.18 -12.19 -0.56%
NASD 5,284.12 -34.42 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes