Building products company Quanex (NYSE:NX) will be announcing earnings results this Thursday after the bell. Here’s what to expect.
Quanex beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $495.3 million, up 76.7% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Quanex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Quanex’s revenue to decline 4.6% year on year to $469.3 million, a reversal from the 66.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Quanex has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Quanex’s peers in the home construction materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hayward delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 5.5%, and Builders FirstSource reported a revenue decline of 6.9%, topping estimates by 2.6%. Hayward traded up 12.1% following the results while Builders FirstSource’s stock price was unchanged.
Read our full analysis of Hayward’s results here and Builders FirstSource’s results here.
Investors in the home construction materials segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Quanex is up 3.9% during the same time and is heading into earnings with an average analyst price target of $28 (compared to the current share price of $13.63).
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