The Gory Details on Quanex Building Products's Double Fumble

Just the facts, Fool.

Seth Jayson
Seth Jayson
Sep 5, 2012 at 12:00AM
Other

Quanex Building Products (NYSE: NX) reported earnings on Sep. 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 31 (Q3), Quanex Building Products missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Quanex Building Products reported revenue of $237.9 million. The seven analysts polled by S&P Capital IQ predicted revenue of $251.4 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $252.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The eight earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS of $0.04 for Q3 were 83% lower than the prior-year quarter's $0.24 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.7%, 150 basis points worse than the prior-year quarter. Operating margin was 0.6%, 560 basis points worse than the prior-year quarter. Net margin was 0.6%, 300 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $247.8 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $856.3 million. The average EPS estimate is $0.26.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 138 members out of 165 rating the stock outperform, and 27 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Quanex Building Products a green thumbs-up, and six 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 $18.38.