Why Quanex Building Products' Shares Plunged
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 aluminum sheet product maker Quanex Building Products fell as much as 13% today after the company reported earnings.
So what: Revenue rose 15% from a year ago, to $185.7 million, which was ahead of the $176.8 million consensus estimate. But the company lost $0.17 per share, which was worse than the $0.06 per share loss analysts expected.
Now what: The company is still bullish on U.S. housing, but thinks window shipments will only improve 5% this year, below some forecasts. That puts a lid on the company's upside and, with losses already pouring down, investors aren't going to bid up shares without seeing more growth. I don't see a reason to buy today, and even the $0.45 per share profit estimate for 2013 looks steep after today's results.
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The article Why Quanex Building Products' Shares Plunged originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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