Building products company Quanex (NYSE: NX) will be reporting results this Thursday after market close. Here’s what to expect.
Quanex beat analysts’ revenue expectations last quarter, reporting revenues of $409.1 million, up 2.3% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat 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, the market is expecting Quanex’s revenue to grow 1.6% year on year, slowing from the 70% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Quanex has a history of exceeding Wall Street’s expectations.
Looking at Quanex’s peers in the home construction materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 6.4%, and Owens Corning reported a revenue decline of 10.5%, topping estimates by 4.1%. Simpson traded up 2.5% following the results while Owens Corning’s stock price was unchanged.
Read our full analysis of Simpson’s results here and Owens Corning’s results here.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 6.2% on average over the last month. Quanex’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $28 (compared to the current share price of $18.39).
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