NYSE$NX

Quanex Building Products Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported second quarter results with margin expansion in North America and on a consolidated basis. Repaid $10 million in bank debt and reaffirmed full year 2024 guidance. Tyman acquisition is expected to close in 2H24.

Quanex reported net sales of $266.2 million, a decrease of 2.7% compared to the same period in 2023, primarily due to softer market demand in European Fenestration and North American Cabinet Components segments. However, the company saw volume increase in North America compared to Q1 and realized margin expansion in both North American operating segments and on a consolidated basis. Quanex reaffirmed its full year 2024 guidance.

  • Net sales decreased by 2.7% to $266.2 million due to softer market demand in Europe and North American Cabinet Components.
  • North American Fenestration segment net sales increased by 1.8% due to improved volume.
  • North American Cabinet Components segment net sales decreased by 4.6% due to lower volume and decreased pricing.
  • Quanex reaffirmed its full year 2024 guidance, estimating net sales of approximately $1.1 billion and Adjusted EBITDA of approximately $145 million to $150 million.

Headline financials

Total Revenue

$266M

Previous: $274M-2.7%
EPS

$0.46

Previous: $0.66-30.3%
Gross Margin Percentage

24.9%

No prior period
Adj. EBITDA Margin

15.0%

No prior period
Capital Expenditures

-$17.2M

Previous: -$7.49M-129.4%
Free Cash Flow

$19.8M

Previous: $31M-36.2%
Net Income

$15.4M

Previous: $21.5M-28.5%
Operating Income

$20.6M

Previous: $29.3M-29.7%
Gross Profit

$66.2M

Previous: $67.2M-1.4%
Cash & Equivalents

$56.1M

Previous: $43.5M+29.1%
Total Assets

$837M

Previous: $822M+1.8%
Stock-Based Comp

$782K

Previous: $719K+8.8%

Revenue & EPS history

Quanex · Revenue · Quarterly

$266M

Q2 2024-2.7%vs Q2 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Quanex reaffirms its prior guidance for fiscal year 2024, estimating net sales of approximately $1.1 billion, which should result in approximately $145 million to $150 million of Adjusted EBITDA.

Tailwinds

  • Seasonal uptick in demand for products in North America.
  • Business is resilient.
  • Performing well in Europe despite challenging market dynamics.
  • Net sales of approximately $1.1 billion.
  • Adjusted EBITDA between $145 million and $150 million.

Headwinds

  • Market dynamics in Europe continue to be challenging.
  • Volumes are soft in Europe.
  • Certain items required for reconciliation of Adjusted EBITDA are outside of the Company’s control.
  • Certain items required for reconciliation of Adjusted EBITDA cannot be reasonably predicted or estimated.
  • Provision for income taxes cannot be reasonably predicted or estimated.

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 2024

Historical avgQ2 2024

+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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