Latest news with #Quanex
Yahoo
13-06-2025
- Business
- Yahoo
Q1 Earnings Highs And Lows: Quanex (NYSE:NX) Vs The Rest Of The Home Construction Materials Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how home construction materials stocks fared in Q1, starting with Quanex (NYSE:NX). Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies. The 12 home construction materials stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts' consensus estimates. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components. Quanex reported revenues of $452.5 million, up 70% year on year. This print exceeded analysts' expectations by 3.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. George Wilson, Chairman, President and Chief Executive Officer, commented, 'Our results for the second quarter of 2025 came in as expected and reflected normal seasonality in our business. Revenue in March was approximately 6% higher than February and revenue in April was approximately 9% higher than March. It was also encouraging to see volume growth in our European Fenestration segment during the second quarter of 2025. We continue to be pleased with the integration of Tyman, and are now confident we will deliver approximately $45 million in cost synergies over time, compared to our original target of $30 million within the first two years post-acquisition. On a run-rate basis, we see a path to achieving the original $30 million cost synergy target by early fiscal 2026. We also took advantage of our low stock price during the second quarter and spent over $23 million repurchasing our shares. Quanex achieved the fastest revenue growth and highest full-year guidance raise of the whole group. The stock is up 20.2% since reporting and currently trades at $20.56. Is now the time to buy Quanex? Access our full analysis of the earnings results here, it's free. Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products. Simpson reported revenues of $538.9 million, up 1.6% year on year, outperforming analysts' expectations by 2%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' EPS estimates. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $156.83. Is now the time to buy Simpson? Access our full analysis of the earnings results here, it's free. Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets. Masco reported revenues of $1.80 billion, down 6.5% year on year, falling short of analysts' expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. Interestingly, the stock is up 4.1% since the results and currently trades at $63.83. Read our full analysis of Masco's results here. Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products. Builders FirstSource reported revenues of $3.66 billion, down 6% year on year. This number was in line with analysts' expectations. Zooming out, it was a slower quarter as it recorded a miss of analysts' Windows, doors & millwork revenue estimates and full-year EBITDA guidance missing analysts' expectations significantly. Builders FirstSource had the weakest full-year guidance update among its peers. The stock is down 4% since reporting and currently trades at $114.55. Read our full, actionable report on Builders FirstSource here, it's free. Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets. Owens Corning reported revenues of $2.53 billion, up 25.4% year on year. This print beat analysts' expectations by 0.7%. More broadly, it was a slower quarter as it logged a significant miss of analysts' organic revenue estimates. The stock is down 2.6% since reporting and currently trades at $138.85. Read our full, actionable report on Owens Corning here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
10-06-2025
- Business
- Yahoo
NX Q1 Earnings Call: Quanex Highlights Cost Synergy Progress and Market Share Gains
Building products company Quanex (NYSE:NX) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 70% year on year to $452.5 million. The company expects the full year's revenue to be around $1.85 billion, close to analysts' estimates. Its non-GAAP profit of $0.60 per share was 27% above analysts' consensus estimates. Is now the time to buy NX? Find out in our full research report (it's free). Revenue: $452.5 million vs analyst estimates of $438.4 million (70% year-on-year growth, 3.2% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.47 (27% beat) Adjusted EBITDA: $61.91 million vs analyst estimates of $58.91 million (13.7% margin, 5.1% beat) The company reconfirmed its revenue guidance for the full year of $1.85 billion at the midpoint EBITDA guidance for the full year is $275 million at the midpoint, above analyst estimates of $272 million Operating Margin: 9%, up from 7.8% in the same quarter last year Market Capitalization: $869.6 million Quanex's first quarter performance was primarily shaped by the integration of its recent acquisition and ongoing cost control initiatives. CEO George Wilson emphasized that the company's operational focus led to better-than-expected cost synergies, stating, 'We now expect to realize cost synergies of approximately $45 million over time, which equates to a 50% increase compared to the original target.' Despite underlying market headwinds in both North America and Europe—such as lower consumer confidence and tariff-related uncertainties—Quanex benefited from market share gains in key product lines, including vinyl extrusion and IG spacers. The company's ability to localize supply chains and implement surcharge pricing also helped mitigate tariff impacts, while the North American cabinet segment saw incremental quoting opportunities as customers sought to increase domestic sourcing. Looking ahead, Quanex's management sees additional gains from the second phase of integration, which will focus on expanding its go-to-market strategy, optimizing operations, and developing new products. Wilson noted that these efforts are 'aligned to the profitable growth strategy outlined at our Investor Day,' and are expected to drive margin expansion and create opportunities in new markets. The company is also responding to ongoing tariff risks by further localizing supply chains and exploring alternative sourcing. CFO Scott Zuehlke reaffirmed the company's commitment to debt repayment and selective share repurchases, stating that investment will continue in organic projects aimed at enhancing margins. However, management acknowledged ongoing external uncertainties, including interest rates and geopolitical tensions, which could influence consumer demand and pricing. Management tied Quanex's outperformance to successful integration of its recent acquisition, targeted cost reductions, and localized supply chains that helped offset market and tariff pressures. Acquisition integration progress: The Tyman acquisition's integration advanced more quickly than anticipated, with new operating segments established and back-office teams nearly finalized. Management cited both organizational streamlining and procurement synergies as key contributors to higher cost savings. Cost synergy upside: The company raised its expected cost synergy target from $30 million to $45 million, a 50% increase over the original estimate. Synergy realization to date has come from both headcount reductions and expanded purchasing efficiencies, with further upside possible as integration continues. Tariff risk mitigation: Quanex's move to localize supply chains and utilize surcharge pricing has limited the impact of tariffs. The company estimates approximately 22% of its cost of goods sold is exposed to tariff risk, but noted that North American exposure is largely offset due to compliance with USMCA (United States-Mexico-Canada Agreement) rules. European market share gains: Despite ongoing market softness in Europe, Quanex achieved market share increases in vinyl extrusion and insulating glass (IG) spacer product lines. These gains helped offset weaker end-market demand and pricing pressures in the region. Capital allocation discipline: The company repurchased $23.5 million of stock during the quarter and plans to prioritize debt repayment and investment in organic projects, while remaining opportunistic with future buybacks if market conditions warrant. Quanex's forward outlook is shaped by continued integration of the acquisition, operational improvements, and proactive responses to external risks such as tariffs and consumer demand. Second phase of integration: Management expects the next phase will focus on geographic expansion, operational footprint optimization, new product and materials development, and product portfolio analysis. These steps are designed to drive both above-market growth and further margin improvement. Tariff and supply chain strategy: The company believes that further localizing supply chains and diversifying sourcing will continue to mitigate tariff-related risks. Management noted that these actions have already resulted in new quoting opportunities, particularly in cabinet components, as customers shift toward domestic suppliers. Macroeconomic and geopolitical uncertainties: Ongoing headwinds such as elevated interest rates and geopolitical tensions in Europe and the Middle East are expected to continue affecting consumer confidence and market demand. Management remains cautious, emphasizing the importance of operational discipline and flexibility in navigating these uncertainties. In upcoming quarters, the StockStory team will be watching (1) the pace at which Quanex realizes additional cost and procurement synergies from the Tyman integration, (2) progress on geographic and product expansion initiatives outlined for the next integration phase, and (3) evidence of improved market share or resilience in core product lines despite ongoing tariff and macroeconomic headwinds. Execution on further supply chain localization and operational optimization will also be key signposts. Quanex currently trades at a forward P/E ratio of 7×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
05-06-2025
- Business
- Yahoo
Quanex Building Products (NX) Tops Q2 Earnings and Revenue Estimates
Quanex Building Products (NX) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this housing materials maker would post a loss of $0.06 per share when it actually produced earnings of $0.19, delivering a surprise of 416.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Quanex , which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $452.48 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.77%. This compares to year-ago revenues of $266.2 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Quanex shares have lost about 29.3% since the beginning of the year versus the S&P 500's gain of 1.5%. While Quanex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Quanex: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.85 on $490.8 million in revenues for the coming quarter and $2.55 on $1.84 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Construction sector, Worthington Enterprises (WOR), is yet to report results for the quarter ended May 2025. The results are expected to be released on June 24. This metal manufacturer is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +2.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Worthington Enterprises' revenues are expected to be $306.7 million, down 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanex Building Products Corporation (NX) : Free Stock Analysis Report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
San Francisco Chronicle
05-06-2025
- Business
- San Francisco Chronicle
Quanex: Fiscal Q2 Earnings Snapshot
HOUSTON (AP) — HOUSTON (AP) — Quanex Building Products Corp. (NX) on Thursday reported earnings of $20.5 million in its fiscal second quarter. The Houston-based company said it had profit of 44 cents per share. Earnings, adjusted for non-recurring costs, were 60 cents per share. The housing materials maker posted revenue of $452.5 million in the period. Quanex expects full-year revenue in the range of $1.84 billion to $1.86 billion. _____
Yahoo
05-06-2025
- Business
- Yahoo
Quanex (NYSE:NX) Reports Strong Q1
Building products company Quanex (NYSE:NX) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 70% year on year to $452.5 million. The company expects the full year's revenue to be around $1.85 billion, close to analysts' estimates. Its non-GAAP profit of $0.60 per share was 27% above analysts' consensus estimates. Is now the time to buy Quanex? Find out in our full research report. Revenue: $452.5 million vs analyst estimates of $438.4 million (70% year-on-year growth, 3.2% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.47 (27% beat) Adjusted EBITDA: $61.9 million vs analyst estimates of $58.91 million (13.7% margin, 5.1% beat) The company reconfirmed its revenue guidance for the full year of $1.85 billion at the midpoint EBITDA guidance for the full year is $275 million at the midpoint, above analyst estimates of $272 million Operating Margin: 9%, up from 7.8% in the same quarter last year Free Cash Flow Margin: 3%, down from 9.6% in the same quarter last year Market Capitalization: $805.6 million George Wilson, Chairman, President and Chief Executive Officer, commented, 'Our results for the second quarter of 2025 came in as expected and reflected normal seasonality in our business. Revenue in March was approximately 6% higher than February and revenue in April was approximately 9% higher than March. It was also encouraging to see volume growth in our European Fenestration segment during the second quarter of 2025. We continue to be pleased with the integration of Tyman, and are now confident we will deliver approximately $45 million in cost synergies over time, compared to our original target of $30 million within the first two years post-acquisition. On a run-rate basis, we see a path to achieving the original $30 million cost synergy target by early fiscal 2026. We also took advantage of our low stock price during the second quarter and spent over $23 million repurchasing our shares. Starting in the seamless tube industry, Quanex (NYSE:NX) manufactures building products like window, door, kitchen, and bath cabinet components. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Quanex grew its sales at an excellent 13.5% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Quanex's annualized revenue growth of 18% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can dig further into the company's revenue dynamics by analyzing its most important segments, Fenestration and Cabinet Components, which are 33.4% and 11.3% of revenue. Over the last two years, Quanex's Fenestration revenue (window and door components, North America only) averaged 3.4% year-on-year declines while its Cabinet Components revenue (cabinet parts, North America only) averaged 9.6% declines. This quarter, Quanex reported magnificent year-on-year revenue growth of 70%, and its $452.5 million of revenue beat Wall Street's estimates by 3.2%. Looking ahead, sell-side analysts expect revenue to grow 15.3% over the next 12 months, a slight deceleration versus the last two years. Still, this projection is admirable and implies the market is baking in success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Quanex was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.3% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Quanex's operating margin decreased by 4.3 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Quanex's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q1, Quanex generated an operating margin profit margin of 9%, up 1.3 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Quanex's EPS grew at a spectacular 15% compounded annual growth rate over the last five years, higher than its 13.5% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn't expand and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Quanex's two-year annual EPS declines of 5.4% were bad and lower than its 18% two-year revenue growth. In Q1, Quanex reported EPS at $0.60, down from $0.66 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects Quanex's full-year EPS of $2.13 to grow 27.7%. We were impressed by how significantly Quanex blew past analysts' EPS expectations this quarter. We were also glad its revenue outperformed Wall Street's out, we think this quarter featured some important positives. The stock traded up 4.6% to $17.88 immediately after reporting. Quanex put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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