What Happened?
Shares of building and construction materials manufacturer Owens Corning (NYSE: OC) fell 9.2% in the morning session after the company reported third-quarter 2025 financial results that missed analyst expectations on both the top and bottom lines and provided a weak forecast for the upcoming quarter. The building and construction materials manufacturer's revenue fell 2.9% year on year to $2.68 billion, narrowly missing Wall Street's projections. Similarly, its adjusted earnings per share of $3.67 came in 1.2% below consensus estimates. Compounding the disappointment, Owens Corning's revenue guidance for the fourth quarter of $2.15 billion was significantly below analysts' forecasts of $2.46 billion, implying a sharp 24.3% year-on-year sales decline. This downbeat outlook suggested that the company anticipates facing continued demand challenges ahead.
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What Is The Market Telling Us
Owens Corning’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 4.1% on the news that concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026. JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
Owens Corning is down 33.6% since the beginning of the year, and at $112.43 per share, it is trading 46.7% below its 52-week high of $210.81 from November 2024. Investors who bought $1,000 worth of Owens Corning’s shares 5 years ago would now be looking at an investment worth $1,587.
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