NX - Quanex Building Products (NX) rises after Q2 results beat estimates

2023-06-01 16:49:31 ET

Quanex Building Products ( NYSE: NX ) on Thursday rose 6.7% in extended trading to $22.49 a share after reporting Q2 results.

The maker of construction materials such as windows and cabinetry said sales fell 15% from a year earlier to $273.5 million in Q2. The results beat the average estimate among Wall Street analysts of $270.4 million.

“The decrease was mostly attributable to softer demand, caused in part by customer inventory rebalancing initiatives, lower pricing in North America, and foreign exchange translation impact,” according to a company statement.

Net income declined 19% to $21.5 million, or $0.65 a share, from $26.5 million, or $0.80 a share, a year earlier. Analysts estimated the company would report EPS of $0.41 for the quarter.

Quanex ( NX ) maintained its net sales guidance of $1.12 billion to $1.16 billion for the year, compared with the consensus estimate of $1.14 billion.

“Our continued focus on managing working capital is serving us well and we were able to generate enough free cash to buyback $5.6 million of our stock and pay down our bank debt by $20 million during the second quarter,” George Wilson, president and CEO of Quanex, said in a statement. “Our balance sheet remains strong, and our leverage ratio improved versus the first quarter of this year.”

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