NYSE$NX

Quanex Building Products Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported solid net sales growth across all operating segments, repaid $15 million of bank debt, and liquidity continues to increase.

Quanex Building Products reported a 32% year-over-year increase in net sales for Q3 2021, driven by robust demand across all product lines and operating segments, combined with increased pricing to pass through raw material cost inflation. The company's balance sheet strengthened, allowing for the repayment of $15.0 million in bank debt and the repurchase of approximately $1.8 million of common stock.

  • Net sales increased by approximately 32% year-over-year compared to Q3 2020.
  • Demand for products remained robust across all product lines.
  • Repaid $15.0 million in bank debt and repurchased approximately $1.8 million of common stock.
  • Inflation, supply chain challenges, and labor constraints continue to negatively impact margins.

Headline financials

Total Revenue

$280M

Previous: $212M+32.0%
EPS (adj)

$0.42

Previous: $0.34+23.5%
Capital Expenditures

-$6.21M

Previous: -$4.36M-42.4%
Free Cash Flow

$41.2M

Previous: $43.2M-4.6%
Net Income

$13.7M

Previous: $10.8M+26.3%
Operating Income

$21.6M

Previous: $16.6M+30.2%
Gross Profit

$60M

Previous: $49.7M+20.8%
Cash & Equivalents

$43.7M

Previous: $41.1M+6.3%
Total Assets

$719M

Previous: $687M+4.7%
Stock-Based Comp

$500K

Previous: $427K+17.1%

Revenue & EPS history

Quanex · Revenue · Quarterly

$280M

Q3 2021+32%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Quanex reaffirms net sales guidance of approximately $1.04 billion to $1.06 billion and Adjusted EBITDA of $125 million to $130 million in fiscal 2021.

Tailwinds

  • Optimistic on the demand outlook for products.

Headwinds

  • Expect inflation to continue pressuring margins throughout the fourth quarter of this year.
  • Expect labor costs to continue pressuring margins throughout the fourth quarter of this year.
  • Expect supply chain challenges to continue pressuring margins throughout the fourth quarter of this year.
  • Time lags exist when passing incremental costs along to customers through indexes.
  • Time lags exist when passing incremental costs along to customers through surcharges and price increases.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-0.7%

Avg return

30 days after

55%

37 / 67 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
Q2 2026-13.6%-10.3%
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 2010-5.2%
Q3 2011-5.2%
Q2 2011-5.7%
Q2 2010+1.5%
Q4 2010+1.5%
Q1 2011+1.5%

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