Building products company Quanex (NYSE:NX) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
Quanex beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $452.5 million, up 70% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Quanex a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Quanex’s revenue to grow 75.7% year on year to $492.6 million, a reversal from the 6.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 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 missed Wall Street’s revenue estimates twice over the last two years.
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. Masco’s revenues decreased 1.9% year on year, beating analysts’ expectations by 2.5%, and JELD-WEN reported a revenue decline of 16.5%, topping estimates by 1.7%. Masco traded up 4.7% following the results while JELD-WEN was also up 19.3%.
Read our full analysis of Masco’s results here and JELD-WEN’s results here.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 4.6% on average over the last month. Quanex is up 7.4% during the same time and is heading into earnings with an average analyst price target of $33.75 (compared to the current share price of $20.78).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.