James Hardie(US:JHX) fool.comยท2024-05-21 17:15Core Viewpoint - The sluggish housing market is negatively impacting James Hardie Industries, leading to a significant drop in stock price following the release of its quarterly report [1]. Sales Performance - James Hardie reported earnings of $0.40 per share on revenue of $1 billion, which was approximately $10 million below analyst consensus estimates [2]. - For the full fiscal year ending March 31, the company experienced a sales growth of 4% [2]. Market Conditions - The company's performance is closely linked to the housing and renovation markets, which have cooled due to rising interest rates, with an expected 2% decrease in demand in North America for calendar year 2024 compared to 2023 [3]. Competitive Position - Despite the challenging market, James Hardie continues to grow revenue, suggesting it may be gaining market share. The durability of cement fiber products positions them favorably against traditional alternatives, although installation costs are higher [4]. Stock Performance - Following recent declines, the stock is now 25% below its high for 2024, indicating a reset in expectations. Investors may need to exercise patience as the company navigates through the current market cycle [5].