Why Masonite International Corporation Stock Just Crashed 23%

Shares of door manufacturer Masonite International (NYSE: DOOR) are down 22.6% as of 11:45 a.m. EDT on Thursday in response to yesterday's after-hours earnings report.

Masonite reported after close of trading Wednesday that its fiscal second-quarter sales increased 1% to $520 million. Profits, however, got kicked off the frame -- down 16% year over year to $0.89 per share. Masonite CEO Fred Lynch blamed a combination of "softer than expected demand, [unfavorable] foreign exchange [rates], and certain plant consolidations" for the disappointing results, and noted that "operating and distribution inefficiencies remained a challenge" for Masonite in the quarter.

Relative to Wall Street's expectations, Masonite also performed pretty badly. Analysts had predicted that Masonite would grow, not shrink, its profits in Q2 -- to $1.11 per share. Sales were expected to grow as well, to $546 million. So on both revenue and earnings, Masonite missed estimates.

Source: Fool.com