Fool Checkup: Quanex Building Products Earnings

Seth Jayson, The Motley Fool
Updated

Quanex Building Products (NYS: NX) reported earnings on June 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), Quanex Building Products missed estimates on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP loss per share improved.


Margins contracted across the board.

Revenue details
Quanex Building Products booked revenue of $194.4 million. The seven analysts polled by S&P Capital IQ wanted to see revenue of $201.8 million on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $203.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.06. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.08 per share. GAAP EPS were -$0.34 for Q2 compared to -$0.04 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 11.6%, 240 basis points worse than the prior-year quarter. Operating margin was -8.3%, 760 basis points worse than the prior-year quarter. Net margin was -6.3%, 560 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $251.8 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $853.7 million. The average EPS estimate is $0.22.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 139 members out of 164 rating the stock outperform, and 25 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Quanex Building Products a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quanex Building Products is hold, with an average price target of $18.75.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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