We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Quanex Building (NX) Q4 Earnings Beat Estimates, Fall Y/Y
Read MoreHide Full Article
Quanex Building Products Corporation (NX - Free Report) reported fourth-quarter fiscal 2017 (ended Oct 31, 2017) adjusted earnings per share of 37 cents, which declined 17.8% from 45 cents recorded in the year-ago quarter. Earnings, however, surpassed the Zacks Consensus Estimate of 31 cents by a margin of 19%.
Lower volumes and short-term inefficiencies related to transitioning away from its less profitable wood flooring business mainly led to the decline in earnings. Negative impact of hurricanes in the United States also affected earnings in the quarter.
Including one-time items, the company reported earnings per share of 31 cents in the quarter compared with 16 cents reported in the year-ago quarter.
Quanex Building Products Corporation Price, Consensus and EPS Surprise
Quanex reported revenues of $233 million in the fiscal fourth quarter, which fell 6.5% year over year. Revenues also missed the Zacks Consensus Estimate of $239 million. Quarterly revenues were mainly affected due to the company’s decision to exit from its less profitable wood flooring business.
Cost of sales during the reported quarter declined 5% to $178.3 million from $188.2 million in the prior-year quarter. Gross profit dipped 10.4% year over year to $54.6 million and gross margin contracted 100 basis points to 23.5%.
Selling, general and administrative expenses dropped 12.6% year over year to $23 million. Quanex Building reported adjusted operating profit of $20.2 million, down 10% from $22.5 million recorded in the year-ago quarter. Adjusted EBITDA went down to $33.3 million for the quarter from $34.6 million witnessed in the prior-year quarter.
Financial Update
Quanex reported cash and cash equivalents of $17.5 million at the end of fiscal 2017 compared with $25.5 million at the end of fiscal 2016. The company generated $78.6 million in cash from operating activities in fiscal 2017 compared with $86.4 million recorded in the prior fiscal. Long-term debt was $218million as of Oct 31, 2017, compared with $259 million as of Oct 31, 2016.
On Oct 31, 2017, Quanex divested its non-core wood flooring business — Owens Flooring. Owens Flooring contributed $9.4 million of revenues and net income of less than $0.1 million, excluding the loss on the sale of the plant, in fiscal 2017.
Fiscal 2017 Performance
Quanex posted adjusted earnings of 77 cents per share in fiscal 2017, which decreased 6.1% year over year. However, earnings beat the Zacks Consensus Estimate of 70 cents. Including one-time items, the company posted earnings of 54 cents per share compared with the loss of 5 cents reported in fiscal 2016.
Revenues for fiscal 2017 went down nearly 6.6% to $867 million from $928 million recorded in the previous fiscal. In addition, the top line missed the Zacks Consensus Estimate of $875 million.
Guidance
In fiscal 2018, Quanex expects to generate net sales in the range of $890-$900 million. Adjusted EBITDA is estimated to lie in the band of $103-$108 million. The company remains well positioned for growth and margin expansion in the near future.
Though the recent hurricanes affected demand and led to inefficiencies during the recently-reported quarter, Quanex anticipates elevated demand for its products in the coming quarters as the rebuilding efforts remain on track. Further, the company will continue to focus on generating cash and deleveraging its balance sheet.
Share Price Performance
Quanex has underperformed the industry in a year’s time. The company’s shares have gained only 2.2% compared with 20% growth registered by the industry.
Boise Cascade has a long-term earnings growth rate of 17.6%. Its shares have rallied 75.6%, year to date.
Patrick Industries has a long-term earnings growth rate of 10.6%. So far this year, shares of the company have gained 29.2%.
United Rentals has a long-term earnings growth rate of 18.5%. The company’s shares have been up 55.1% during the same time frame.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Quanex Building (NX) Q4 Earnings Beat Estimates, Fall Y/Y
Quanex Building Products Corporation (NX - Free Report) reported fourth-quarter fiscal 2017 (ended Oct 31, 2017) adjusted earnings per share of 37 cents, which declined 17.8% from 45 cents recorded in the year-ago quarter. Earnings, however, surpassed the Zacks Consensus Estimate of 31 cents by a margin of 19%.
Lower volumes and short-term inefficiencies related to transitioning away from its less profitable wood flooring business mainly led to the decline in earnings. Negative impact of hurricanes in the United States also affected earnings in the quarter.
Including one-time items, the company reported earnings per share of 31 cents in the quarter compared with 16 cents reported in the year-ago quarter.
Quanex Building Products Corporation Price, Consensus and EPS Surprise
Quanex Building Products Corporation Price, Consensus and EPS Surprise | Quanex Building Products Corporation Quote
Operational Update
Quanex reported revenues of $233 million in the fiscal fourth quarter, which fell 6.5% year over year. Revenues also missed the Zacks Consensus Estimate of $239 million. Quarterly revenues were mainly affected due to the company’s decision to exit from its less profitable wood flooring business.
Cost of sales during the reported quarter declined 5% to $178.3 million from $188.2 million in the prior-year quarter. Gross profit dipped 10.4% year over year to $54.6 million and gross margin contracted 100 basis points to 23.5%.
Selling, general and administrative expenses dropped 12.6% year over year to $23 million. Quanex Building reported adjusted operating profit of $20.2 million, down 10% from $22.5 million recorded in the year-ago quarter. Adjusted EBITDA went down to $33.3 million for the quarter from $34.6 million witnessed in the prior-year quarter.
Financial Update
Quanex reported cash and cash equivalents of $17.5 million at the end of fiscal 2017 compared with $25.5 million at the end of fiscal 2016. The company generated $78.6 million in cash from operating activities in fiscal 2017 compared with $86.4 million recorded in the prior fiscal. Long-term debt was $218million as of Oct 31, 2017, compared with $259 million as of Oct 31, 2016.
On Oct 31, 2017, Quanex divested its non-core wood flooring business — Owens Flooring. Owens Flooring contributed $9.4 million of revenues and net income of less than $0.1 million, excluding the loss on the sale of the plant, in fiscal 2017.
Fiscal 2017 Performance
Quanex posted adjusted earnings of 77 cents per share in fiscal 2017, which decreased 6.1% year over year. However, earnings beat the Zacks Consensus Estimate of 70 cents. Including one-time items, the company posted earnings of 54 cents per share compared with the loss of 5 cents reported in fiscal 2016.
Revenues for fiscal 2017 went down nearly 6.6% to $867 million from $928 million recorded in the previous fiscal. In addition, the top line missed the Zacks Consensus Estimate of $875 million.
Guidance
In fiscal 2018, Quanex expects to generate net sales in the range of $890-$900 million. Adjusted EBITDA is estimated to lie in the band of $103-$108 million. The company remains well positioned for growth and margin expansion in the near future.
Though the recent hurricanes affected demand and led to inefficiencies during the recently-reported quarter, Quanex anticipates elevated demand for its products in the coming quarters as the rebuilding efforts remain on track. Further, the company will continue to focus on generating cash and deleveraging its balance sheet.
Share Price Performance
Quanex has underperformed the industry in a year’s time. The company’s shares have gained only 2.2% compared with 20% growth registered by the industry.
Zacks Rank & Key Picks
Quanex currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are Boise Cascade Company (BCC - Free Report) , Patrick Industries, Inc. (PATK - Free Report) and United Rentals, Inc. (URI - Free Report) . All three stocks sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boise Cascade has a long-term earnings growth rate of 17.6%. Its shares have rallied 75.6%, year to date.
Patrick Industries has a long-term earnings growth rate of 10.6%. So far this year, shares of the company have gained 29.2%.
United Rentals has a long-term earnings growth rate of 18.5%. The company’s shares have been up 55.1% during the same time frame.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>