Financial PerformanceThe company's 4th quarter gross margin guidance of 22.5% is significantly below both the Street's expectation of 24.2% and the prior guidance of around 25%.
Market ValuationThe stock trades at 1.9 times forward tangible book value, which is the high-end of its 10-year range, suggesting that much of the positive outlook is already reflected in the current valuation.
ProfitabilityIncreased incentives to maintain sales pace amid softer demand have led to lower gross margins, raising concerns about near-term profitability.