What Happened:
Shares of specialty flooring retailer Floor & Decor (NYSE:FND) fell 9.34% in the morning session after the company reported second-quarter earnings which missed analysts' revenue estimates. The company's full-year revenue, same-store sales, and adjusted EBITDA guidance were lowered and missed analysts' expectations. On the other hand, the company continued to open new store locations, which is supportive of revenue growth. Also, the company realized positive cash flow in the quarter. Overall, this was a mediocre quarter for Floor & Decor, but the investments in new stores should give investors reasons to be optimistic.
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What is the market telling us:
Floor And Decor's shares are very volatile and over the last year have had 26 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Floor And Decor is up 44.6% since the beginning of the year, but at $104.57 per share it is still trading 9.12% below its 52-week high of $115.06 from July 2023. Investors who bought $1,000 worth of Floor And Decor's shares 5 years ago would now be looking at an investment worth $2,830.
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