Quanex Building Products Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Quanex Building Products (NYS: NX) fell as much as 10% today after it announced earnings.
So what: Fiscal-first-quarter sales were flat at $161.6 million and fell below estimates of $181.7 million. The company's loss of $0.18 was six times what analysts had expected.
Now what: The construction business still isn't back on its feet and the quarterly results show the challenges. Management said conditions will continue to be challenging throughout the year as foreclosures continue and credit remains tight. I don't see any reason to buy today's news and would be leery of investing too much in a housing recovery right now.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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