Quanex Building Products
The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Quanex Building Products missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share grew.
Gross margins expanded, operating margins shrank, and net margins shrank.
Quanex Building Products booked revenue of $161.6 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $175.3 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $159.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.13. The eight earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share on the same basis. GAAP EPS were -$0.18 for Q1 versus -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.6%, 200 basis points better than the prior-year quarter. Operating margin was -7.0%, 290 basis points worse than the prior-year quarter. Net margin was -4.2%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $213.5 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $882.1 million. The average EPS estimate is $0.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 167 rating the stock outperform, and 25 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Quanex Building Products a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quanex Building Products is hold, with an average price target of $19.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.