NYSE$NX

Quanex Building Products Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported solid revenue growth and provided full year 2022 guidance.

Quanex Building Products reported a 16.0% increase in net sales to $267.0 million for the three months ended January 31, 2022, driven by volume increases and higher prices. The company is providing full year 2022 guidance, expecting another record year of revenue and earnings.

  • Net sales increased by 16.0% year-over-year, reaching $267.0 million.
  • Growth was attributed to volume increases in fenestration segments and higher prices.
  • Inflationary pressures and supply chain challenges impacted margin percentage.
  • Liquidity decreased slightly to $289.2 million, including $31.7 million in cash on hand.

Headline financials

Total Revenue

$267M

Previous: $230M+16.0%
EPS (adj)

$0.34

Previous: $0.27+25.9%
Leverage Ratio

0.4

No prior period
Capital Expenditures

-$7.37M

Previous: -$5.25M-40.5%
Free Cash Flow

-$29M

Previous: -$8.64M-235.9%
Net Income

$11.2M

Previous: $7.85M+43.1%
Operating Income

$14.1M

Previous: $11.8M+19.4%
Gross Profit

$55.2M

Previous: $53.8M+2.7%
Cash & Equivalents

$31.7M

Previous: $43.4M-27.0%
Total Assets

$718M

Previous: $694M+3.5%
Stock-Based Comp

$552K

Previous: $523K+5.5%

Revenue & EPS history

Quanex · Revenue · Quarterly

$267M

Q1 2022+16%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company expects net sales of $1.13 billion to $1.15 billion and Adjusted EBITDA of $135 million to $140 million in fiscal year 2022, assuming current inflation and supply chain challenges do not worsen materially.

Tailwinds

  • Expects high-single digit revenue growth in North American Fenestration segment.
  • Expects low to mid-single digit revenue growth in North American Cabinet Components segment.
  • Expects mid-single digit revenue growth in European Fenestration segment.
  • Anticipates some margin expansion in the second half of the year.
  • Demand remains healthy.

Headwinds

  • Inflation continues to cause pressure on margins.
  • Revenue growth is expected to be mostly driven by price as opposed to increased volume.
  • Inflation and supply chain challenges could worsen materially.
  • Unspecified risks detailed in the company's 10-K and 10-Q filings.
  • Potential impacts from public health issues on the economy and demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.4%

Avg return

Earnings day

+0.8%

Avg return

5 days after

-0.7%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+23.8%

Q2 2023

Best reaction

-17.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.9%-5.9%-7.1%
Q4 2025+6.5%+5.2%+16.2%
Q3 2025-12.8%-27.3%-29.6%
Q2 2025+0.0%-5.6%-3.1%
Q1 2025-9.2%-3.4%-14.6%
Q4 2024-3.8%-9.9%-25.7%
Q3 2024+19.9%+3.6%+8.0%
Q2 2024+2.8%-4.1%-13.4%
Q1 2024-2.3%+0.6%+10.4%
Q4 2023-7.0%-6.1%-7.6%
Q3 2023+9.0%+5.3%+4.2%
Q2 2023+23.8%+24.3%+27.8%
Q1 2023-17.7%-20.6%-20.7%
Q4 2022-2.1%-2.6%+1.1%
Q3 2022-4.5%-5.2%-18.6%
Q2 2022+13.1%+20.8%+15.4%
Q1 2022+0.9%-2.1%-6.5%
Q4 2021+3.4%+4.0%+6.7%
Q3 2021-6.5%-6.2%-7.0%
Q2 2021+3.5%+5.3%-7.5%
Q1 2021+1.5%+8.8%+9.8%
Q4 2020+1.1%+2.3%+15.6%
Q3 2020+6.4%+6.6%+11.1%
Q2 2020+5.4%+2.3%-4.3%
Q1 2020-0.2%-12.2%-47.0%
Q4 2019+2.9%+1.5%-10.0%
Q3 2019+6.7%+7.3%+9.4%
Q2 2019+6.4%+5.2%+17.4%
Q1 2019-5.2%-14.6%-5.6%
Q4 2018-12.7%-5.7%+9.3%
Q3 2018+19.3%+18.1%+3.9%
Q2 2018+14.3%+12.8%+7.7%
Q1 2018+8.8%+5.3%+5.6%
Q4 2017+6.7%+15.1%+7.2%
Q3 2017-0.3%-0.8%+17.6%
Q2 2017+5.9%+8.7%+7.7%
Q1 2017+1.0%+1.8%+1.3%
Q4 2016+2.0%+5.7%+2.2%
Q3 2016-6.1%-9.2%-9.1%
Q2 2016+1.7%+0.9%-4.4%
Q1 2016-9.6%
Q4 2015+9.1%
Q3 2015+11.7%
Q2 2015+8.6%
Q1 2015+0.6%
Q4 2014-9.2%
Q3 2014+0.0%
Q2 2014+3.9%
Q1 2014-0.3%
Q4 2013+6.8%
Q3 2013+7.4%
Q2 2013-5.5%
Q1 2013-10.6%
Q1 2010+6.0%
Q4 2012-8.6%
Q3 2012-2.7%
Q2 2012-1.6%
Q1 2012-5.8%
Q4 2009+13.4%
Q4 2011+13.4%
Q3 2011-5.2%
Q3 2010-5.2%
Q2 2011-5.7%
Q2 2010+1.5%
Q1 2011+1.5%
Q4 2010+1.5%

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