Stock Story -
Building products company Quanex (NYSE:NX) will be reporting earnings tomorrow after market close. Here’s what to expect.
Quanex met analysts’ revenue expectations last quarter, reporting revenues of $266.2 million, down 2.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates.
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This quarter, analysts are expecting Quanex’s revenue to decline 7% year on year to $278.6 million, in line with the 7.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Quanex has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.
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’s revenues decreased 12.4% year on year, missing analysts’ expectations by 1.4%, and American Woodmark reported a revenue decline of 7.9%, falling short of estimates by 3.4%. JELD-WEN’s stock price was unchanged after the results, while American Woodmark was down 11.6%.
Read the full analysis of JELD-WEN’s and American Woodmark’s results on StockStory.
Investors in the home construction materials segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Quanex is down 10.3% during the same time and is heading into earnings with an average analyst price target of $38.3 (compared to the current share price of $25.64).
