NYSE$NX

Quanex Building Products Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter 2023 results with margin expansion in NA Cabinet Components and EU Fenestration segments.

Quanex Building Products reported a decrease in net sales for the second quarter of 2023, primarily due to softer demand and lower pricing. Despite the revenue decline, the company achieved margin expansion in North American Cabinet Components and European Fenestration segments. They also repurchased $5.6 million of stock and reduced bank debt by $20 million.

  • Net sales decreased by 15.3% compared to the same period in 2022.
  • Demand improved across all product lines during the second quarter compared to the first quarter.
  • Achieved synergy target for the LMI Custom Mixing acquisition.
  • Reaffirmed full year 2023 guidance.

Headline financials

Total Revenue

$274M

Previous: $323M-15.3%
EPS (adj)

$0.66

Previous: $0.80-17.5%
Capital Expenditures

-$7.49M

Previous: -$6.42M-16.8%
Free Cash Flow

$31M

Previous: -$8.3M+473.3%
Net Income

$21.5M

Previous: $26.5M-18.9%
Operating Income

$29.3M

Previous: $34.6M-15.1%
Gross Profit

$67.2M

Previous: $73.2M-8.3%
Cash & Equivalents

$43.5M

Previous: $38.9M+11.8%
Total Assets

$822M

Previous: $740M+11.0%
Stock-Based Comp

$719K

Previous: $572K+25.7%

Revenue & EPS history

Quanex · Revenue · Quarterly

$274M

Q2 2023-15.3%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The company continues to estimate net sales of $1.12 billion to $1.16 billion and Adjusted EBITDA of approximately $130 million to $142 million in fiscal 2023.

Tailwinds

  • Long-term underlying fundamentals for the residential housing market remain positive.
  • Recent results and belief that they are seeing a return to normal seasonality.
  • Focus on generating cash.
  • Focus on paying down debt.
  • Focus on evaluating growth opportunities and opportunistically buying back stock.

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 Q2 2023

Historical avgQ2 2023

+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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