Building products company Quanex (NYSE: NX) will be announcing earnings results this Thursday afternoon. Here’s what you need to know.
Quanex beat analysts’ revenue expectations last quarter, reporting revenues of $462.4 million, up 2.2% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA 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 be flat year on year, slowing from the 76.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally 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 Q2 results, giving us a hint as to what we can expect. JELD-WEN posted flat year-on-year revenue, beating analysts’ expectations by 3.2%, and Owens Corning reported flat revenue, topping estimates by 4%. JELD-WEN traded up 25.7% following the results while Owens Corning was also up 3.5%.
Read our full analysis of JELD-WEN’s results here and Owens Corning’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the home construction materials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.6% on average over the last month. Quanex is down 3.8% during the same time and is heading into earnings with an average analyst price target of $27.25 (compared to the current share price of $18.50).
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