Switzerland-based plumbing and heating specialist Wolseley (WOS) falls back down to earth after a strong run year-to-date.
One of the market's big losers today, the stock tumbles more than 10% after full year results.
Chief executive Ian Meakins gives an upbeat assessment of the multinational's general prospects in the year ahead but the market is focusing on two key risks highlighted in Meakins' outlook statement.
'Industrial markets in North America, which account for about 15 per cent of revenue in the region, were challenging in the fourth quarter and we expect this to continue,' Meakins says.
'We expect a continued steady recovery in the Nordic markets, although the heating market in the UK is expected to remain very competitive with little growth. Overall, we expect to make continued progress in 2016.'
Results for the year to 31 July 2015 look slightly ahead of expectations, according to analysts at Sanlam Securities.
'The Wolseley share price has had a very strong run over the past 12 months, rising from around £32.00 to £41.79,' writes analyst Andy Brown.
'This equates to strong outperformance against the UK market.'
Wolseley trades at a 2016 price-to-earnings ratio of 16, falling to 14.2 the year after, according to consensus forecasts. Enterprise value to earnings before interest, tax, depreciation and amortisation is 10.5 falling to 9.2.
'Wolseley trades at a premium to its merchanting peers,' Brown adds.
'It retains a large North American presence where like-for-like trading trends and currency translation has been positive.'
Shares in Wolseley trade 10.7% lower at £37.30 in a falling general market.