Quanex Building Products (NYSE: NX) is set to release its earnings report tomorrow after market close. This announcement is highly anticipated, and investors are eager to gauge the company’s financial performance.
Previous Quarter Performance
In the previous quarter, Quanex met analysts’ revenue expectations by reporting $266.2 million in revenue, which marks a 2.7% decline compared to the same period last year. Despite this decrease, the company performed well, exceeding analysts’ expectations for operating margins.
Current Quarter Expectations
For the current quarter, analysts project a 7% year-over-year decline in Quanex’s revenue, estimating it will reach $278.6 million. This forecast aligns with the 7.5% decrease experienced in the same quarter last year. Adjusted earnings per share are anticipated to be $0.71.
Analyst Sentiment
Over the past 30 days, most analysts have upheld their estimates for Quanex, indicating that they expect the company to maintain its trajectory. Historically, Quanex has missed Wall Street’s revenue estimates only once in the last two years, generally surpassing expectations by an average of 2.6%.
Peer Performance Insights
Examining the performance of Quanex’s peers in the home construction materials sector offers additional context. JELD-WEN reported a 12.4% revenue decrease, falling short of analysts’ expectations by 1.4%. American Woodmark also saw a 7.9% revenue decline, missing estimates by 3.4%. Following these reports, JELD-WEN’s stock remained stable, while American Woodmark’s shares declined by 11.6%.
Investor Sentiment in the Sector
Investor sentiment within the home construction materials sector has remained stable, with average share prices rising by 1.5% over the past month. In contrast, Quanex’s stock has fallen by 10.3% during the same period. The current average analyst price target for Quanex is $38.30, compared to its current share price of $25.64.
As Quanex prepares to announce its earnings, the company’s performance will be under close scrutiny. Analysts’ expectations suggest a revenue decline, but maintaining their estimates indicates confidence in the company’s stability. The performance of peers and broader sector trends will provide additional insight into Quanex’s results.
Conclusion
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