Quanex Building Products Q3 sales beat estimates
Overview
Quanex Building Products Corp fiscal Q3 net sales rise 76.7% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for fiscal Q3 misses analyst estimates, per LSEG data
Company repaid $51.25 mln in debt, strengthening balance sheet
Outlook
Quanex forecasts fiscal 2025 net sales of about $1.82 bln
Company expects fiscal 2025 Adjusted EBITDA of approximately $235 mln
Quanex focuses on Tyman integration and capturing synergies
Result Drivers
TYMAN ACQUISITION - Net sales increased 76.7% yr/yr, driven by the Tyman acquisition, with contributions across all segments
GOODWILL IMPAIRMENT - Reported earnings impacted by a $302.3 mln non-cash goodwill impairment due to re-segmentation
LOWER VOLUMES - Excluding Tyman, net sales growth was 1.4%, attributed to increased pricing and tariff passthroughs, offset by lower volumes
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $495.30 mln | $491.60 mln (4 Analysts) |
Q3 Adjusted EPS | Miss | $0.69 | $0.84 (4 Analysts) |
Q3 Adjusted Net Income | Miss | $31.60 mln | $38.20 mln (2 Analysts) |
Q3 Adjusted EBITDA | Miss | $70.30 mln | $80.60 mln (3 Analysts) |
Q3 Gross Margin | 27.9% | ||
Q3 Free Cash Flow | $46.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Quanex Building Products Corp is $34.50, about 41.8% above its September 3 closing price of $20.09
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago
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