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 construction supplier Quanex Building Products
So what: Fiscal-second-quarter revenue was $203.1 million, above analyst expectations of $196 million, but earnings left a lot to be desired. The company posted a loss per share of $0.04 versus an expected profit of $0.11.
Now what: It isn't surprising that the building market isn't strong right now, but it's apparently weaker than investors expected. A high inventory of homes for sale, relatively tight credit, and a lack of tax incentives are being blamed. I am staying away from anything housing-related because I think the recovery will take much longer than anyone expects, as we saw today.
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