NYSE$NX

Quanex Building Products Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Quanex reported record earnings and margin expansion across all operating segments.

Quanex announced record earnings and margin expansion for Q3 2023, driven by improved demand and operational efficiency, despite a revenue decrease due to softer market demand and lower pricing. The company also repaid $25 million in bank debt and is on track to generate record free cash flow this year.

  • Record earnings and margin expansion were achieved in Q3 2023.
  • Demand improved across all product lines compared to the first half of the year.
  • Customer inventory rebalancing that impacted results in the first half have subsided and did not affect third quarter results.
  • The company repaid $25 million in bank debt during the quarter.

Headline financials

Total Revenue

$300M

Previous: $324M-7.5%
EPS (adj)

$0.97

Previous: $0.79+22.8%
Capital Expenditures

-$7.38M

Previous: -$5.7M-29.3%
Free Cash Flow

$95.2M

Previous: $44.2M+115.6%
Net Income

$31.7M

Previous: $25.9M+22.3%
Operating Income

$37.5M

Previous: $34M+10.1%
Gross Profit

$78.6M

Previous: $72.6M+8.2%
Cash & Equivalents

$73.3M

Previous: $50M+46.4%
Total Assets

$848M

Previous: $744M+14.0%
Stock-Based Comp

$430K

Previous: $583K-26.2%

Revenue & EPS history

Quanex · Revenue · Quarterly

$300M

Q3 2023-7.5%vs Q3 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Quanex updates its full year fiscal 2023 guidance, estimating net sales of approximately $1.125 billion and increasing Adjusted EBITDA guidance to $150 million to $155 million.

Tailwinds

  • Belief that they were seeing a return to normal seasonality.
  • Third quarter results reinforced that belief.
  • Operational execution.
  • Recent demand trends.
  • Conversations with customers.

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 2023

Historical avgQ3 2023

+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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