Atlanta-based flooring retailer Floor & Decor (NYSE:FND) saw a significant decrease in its share price, which plunged 14% to $73 in light premarket trading on Friday. This sharp decline followed Thursday's close at $84.92.
Despite meeting Wall Street's Q3 expectations with a profit of 61 cents a share and sales of $1.11 billion, the company revised down its full-year guidance from the forecast it had issued in August. The revised projections now anticipate earnings of $2.14-$2.24 per share and sales of $4.345-$4.385 billion. This marks a decrease from the previous estimate of earnings between $2.30-$2.50 per share and sales ranging from $4.46-$4.53 billion.
In addition to the lowered revenue and earnings guidance, Floor & Decor also anticipates a more significant decline in full-year same-store sales, now expected to fall between 7.8%-8.5%, as outlined by Colin Kellaher. This further adjustment contributes to the bearish sentiment surrounding the company's stock performance as we move towards the end of the fiscal year.
InvestingPro Insights
According to InvestingPro, Floor & Decor (NYSE:FND) has been yielding high returns on invested capital and has seen a significant return over the last week. However, it's important to note that the company's stock price movements have been quite volatile, reflecting the significant decrease in its share price recently.
InvestingPro data reveals that as of Q2 2023, the company has a market cap of $9040M and a P/E ratio of 31.14. Its revenue for the last twelve months stands at $4403.84M, reflecting a growth of 12.65%. The company's Price/Book ratio, a key metric for valuation, is at 4.83.
These insights, coupled with the 200+ additional InvestingPro Tips available for FND, provide a comprehensive picture of the company's financial health and market performance. This information can be invaluable for investors looking to navigate the volatile landscape and make informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.