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Quanex Building Products Q3 Preview: Can the Earnings Streak Continue?
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The Zacks Construction Sector has faced turbulence in 2022, down more than 20% and vastly underperforming the S&P 500.
Image Source: Zacks Investment Research
A company residing in the sector, Quanex Building Products (NX - Free Report) , is on deck to unveil Q3 earnings on Thursday, September 1st, after the market close.
Quanex Building Products is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
As it stands, the company rocks a Zacks Rank #3 (Hold) with an overall VGM Score of an A. How does everything stack up heading into the print for the construction giant? Let’s take a closer look.
Share Performance & Valuation
Quanex Building Products shares have provided investors with a much-needed layer of defense in 2022, down 9% and vastly outperforming the S&P 500.
Image Source: Zacks Investment Research
However, NX shares have tumbled over the last month, declining 11% in value and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Still, the company’s shares trade at rock-solid valuation levels – Quanex Building Products’ forward earnings multiple resides at 9.7X, a fraction of its 18.4X five-year median and representing a steep 12% discount relative to its Zacks Sector.
NX sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have left their earnings estimates unchanged over the last 60 days, with zero revisions hitting the tape. Still, the Zacks Consensus EPS Estimate of $0.62 pencils in a stellar 50% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
Further, the company’s top-line is also in great shape – the Zacks Consensus Sales Estimate of $301 million reflects year-over-year revenue growth of nearly 8%.
Quarterly Performance & Market Reactions
Quanex has consistently exceeded bottom-line estimates, surpassing the Zacks Consensus EPS Estimate in six of its last seven prints. Just in its latest quarter, NX penciled in a substantial 80% bottom-line beat.
Quarterly revenue numbers have also repeatedly come in above expectations, with the company chaining together seven consecutive top-line beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, shares have moved upwards following each of NX’s previous three quarterly reports.
Putting Everything Together
NX shares have been defensive overall in 2022, but over the last month, they’ve widely lagged behind the general market.
Quanex Building Products has impressive valuation levels, with its forward P/E ratio residing well beneath its five-year median and Zacks Sector average.
Analysts haven’t touched their bottom-line estimates over the last several months, but estimates reflect solid growth in revenue and earnings.
Further, the company has consistently exceeded quarterly estimates, and the market has had strong reactions following its last three prints.
Heading into the release, Quanex Building Products (NX - Free Report) carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
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Quanex Building Products Q3 Preview: Can the Earnings Streak Continue?
The Zacks Construction Sector has faced turbulence in 2022, down more than 20% and vastly underperforming the S&P 500.
Image Source: Zacks Investment Research
A company residing in the sector, Quanex Building Products (NX - Free Report) , is on deck to unveil Q3 earnings on Thursday, September 1st, after the market close.
Quanex Building Products is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
As it stands, the company rocks a Zacks Rank #3 (Hold) with an overall VGM Score of an A. How does everything stack up heading into the print for the construction giant? Let’s take a closer look.
Share Performance & Valuation
Quanex Building Products shares have provided investors with a much-needed layer of defense in 2022, down 9% and vastly outperforming the S&P 500.
Image Source: Zacks Investment Research
However, NX shares have tumbled over the last month, declining 11% in value and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Still, the company’s shares trade at rock-solid valuation levels – Quanex Building Products’ forward earnings multiple resides at 9.7X, a fraction of its 18.4X five-year median and representing a steep 12% discount relative to its Zacks Sector.
NX sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have left their earnings estimates unchanged over the last 60 days, with zero revisions hitting the tape. Still, the Zacks Consensus EPS Estimate of $0.62 pencils in a stellar 50% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
Further, the company’s top-line is also in great shape – the Zacks Consensus Sales Estimate of $301 million reflects year-over-year revenue growth of nearly 8%.
Quarterly Performance & Market Reactions
Quanex has consistently exceeded bottom-line estimates, surpassing the Zacks Consensus EPS Estimate in six of its last seven prints. Just in its latest quarter, NX penciled in a substantial 80% bottom-line beat.
Quarterly revenue numbers have also repeatedly come in above expectations, with the company chaining together seven consecutive top-line beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, shares have moved upwards following each of NX’s previous three quarterly reports.
Putting Everything Together
NX shares have been defensive overall in 2022, but over the last month, they’ve widely lagged behind the general market.
Quanex Building Products has impressive valuation levels, with its forward P/E ratio residing well beneath its five-year median and Zacks Sector average.
Analysts haven’t touched their bottom-line estimates over the last several months, but estimates reflect solid growth in revenue and earnings.
Further, the company has consistently exceeded quarterly estimates, and the market has had strong reactions following its last three prints.
Heading into the release, Quanex Building Products (NX - Free Report) carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.