Here's Why Forterra Inc.'s Stock Is Crashing Today
Shares of Forterra Inc. (NASDAQ: FRTA) crashed on Thursday and were down a breathtaking 52% at 11:00 a.m. EDT after the company's second-quarter results came in well below guidance, which it partly blamed on the weather.
Last quarter, Forterra guided that its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the second quarter would be in the range of $50 million to $60 million. That was well below the $89 million consensus estimate and led to a massive sell-off in the stock at the time. Unfortunately, the second quarter turned out to be even worse than the company anticipated after it only generated $46.5 million of adjusted EBITDA, which was down from $74 million in the year-ago quarter.
Driving the miss was the adverse impact of Tropical Storm Cindy, excessive rainfall events around the country, and a decline in the average sales price of its products due to "unanticipated competitive pricing pressure," according to CEO Jeff Bradley.
Source: Fool.com
