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Quanex (NX) to Report Q3 Earnings: What's in the Offing?

Quanex's (NX) fiscal third-quarter performance is likely to have benefited from solid consumer demand for its products across all the segments.

This story originally appeared on Zacks

Quanex Building Products Corporation NX is scheduled to report third-quarter fiscal 2021 results on Sep 2, after the closing bell.

- Zacks

In the last reported quarter, the company’s revenues and earnings beat the Zacks Consensus Estimate by 24.3% and 26.5%, respectively. Also, the top and the bottom line surged 44.2% and 126.3%, respectively, on a year-over-year basis.

Q3 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for earnings has been unchanged in the past 30 days at 50 cents per share. The figure indicates 47.1% increase from the year-ago quarter’s earnings of 34 cents per share. The consensus mark for revenues is pegged at $270.3 million, suggesting 27.4% year-over-year growth.

Factors to Consider

Quanex’s fiscal third-quarter revenues are expected to have improved primarily on solid demand for the company’s products across all product lines and operating segments. Also, the company’s robust business strategy and cost-containment efforts are likely to have driven growth in the quarter to be reported.

Quanex, the manufacturer of window and cabinet components, has been witnessing solid demand for its products, mainly backed by strong North American residential housing market. This trend is likely to have contributed to the company’s fiscal third-quarter revenues.

The Zacks Consensus Estimate for NA Fenestration’ sales is pegged at $159 million, which indicates growth of 29.9% year over year. The same for EU Fenestration sales is currently pegged at $52 million, which suggests an improvement of 35.8% from the prior-year quarter’s levels. The consensus mark for the NA Cabinet Components segment sales is currently pegged at $61 million, suggesting year-over-year growth of 17.5%. The company is expected to have witnessed the positive impacts of increased pricing and improved operating leverage during fiscal third quarter.

Overall, inorganic strategies, cost-saving initiatives and solid housing fundamentals are likely to get reflected in fiscal third-quarter revenues. However, increased inflationary pressures on most of its key raw material inputs and non-availability of labor remain potent headwinds for the company.


Quantitative Model Prediction

Our proven model does not conclusively predict an earnings beat for Quanex this time around. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Earnings ESP: Quanex has an Earnings ESP of 0.00%, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Quanex currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Owens Corning Inc. OC has an Earnings ESP of +1.37% and carries a Zacks Rank #2.

Masco Corporation MAS has an Earnings ESP of +1.14% and a Zacks Rank #2.

KB Home KBH has an Earnings ESP of +1.12% and a Zacks Rank #2.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Masco Corporation (MAS): Free Stock Analysis Report


KB Home (KBH): Free Stock Analysis Report


Quanex Building Products Corporation (NX): Free Stock Analysis Report


Owens Corning Inc (OC): Free Stock Analysis Report


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