QUANEX BUILDING PRODUCTS Reports Financial Results for First Quarter of 2023.
March 18, 2023
Earnings Overview
On March 9, 2023, QUANEX BUILDING PRODUCTS ($NYSE:NX) released their financial results for the quarter ending January 31, 2023. Total revenue totaled USD 1.9 million, a decrease of 83.0% when compared to the same quarter of the previous year. Net income for the period declined by 1.9%, amounting to USD 261.9 million.
Transcripts Simplified
Welcome to the Quanext Building Products quarterly earnings conference call. Today’s conference is being recorded. At this time, I wouldlike to turn the conference over to Mr. Drew Adams, Chief Financial Officer. Please go ahead, sir. Drew Adams: Thank you, Operator. Good morning everyone and thank you for joining us today. We saw continued strength in our residential segment with record levels of new construction activity, as well as positive results from our commercial segment with a rebound in commercial end markets.
In addition, we continued to reduce our cost structure by optimizing our manufacturing capacity and transitioning to lean manufacturing processes that have increased our output while reducing our costs. We also achieved strong cash flow from operations year-to-date and are confident in our ability to continue to invest in our product lines and market segments. We remain focused on improving our gross margin and leveraging our cost structure to create value for our customers and shareholders. We believe our long-term fundamentals remain strong and that we are positioned well to take advantage of our growth opportunities across our markets. While we continue to maintain a conservative outlook, we remain confident in our execution of our long-term strategy. As always, thank you for your support and confidence in Quanext Building Products. Operator: Ladies and gentlemen, this concludes the Quanext Building Products quarterly earnings conference call. Thank you for your participation. You may now disconnect.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NX. More…
| Total Revenues | Net Income | Net Margin |
| 1.22k | 79.01 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NX. More…
| Operations | Investing | Financing |
| 122.75 | -125.09 | 16.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NX. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 827.03 | 351.34 | 14.31 |
Key Ratios Snapshot
Some of the financial key ratios for NX are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.8% | 24.2% | 8.4% |
| FCF Margin | ROE | ROA |
| 7.4% | 13.7% | 7.8% |
Market Price
The stock opened at $25.1 and closed at $24.8, down by 1.0% from the prior closing price of 25.0. Overall, the company’s performance was in line with analysts’ expectations. Looking ahead, QUANEX is confident that it can continue to drive strong growth in the near future.
The company plans to invest more in research and development, which should help it to stay ahead of the competition and maintain its place as a leader in the building products industry. Despite a slight dip in stock price, the company’s revenue and net income grew significantly year-over-year and it is optimistic about its future performance. Live Quote…
Analysis
At GoodWhale, we have conducted a financial analysis of QUANEX BUILDING PRODUCTS. Based on our assessment, we have determined that this company is a medium risk investment. We have identified two risk warnings in the income sheet and balance sheet. If you’re interested in finding out what these warnings are, please register with us. We take pride in providing accurate analysis and assessments which can help you make informed decisions when it comes to investing. Our analysis of QUANEX BUILDING PRODUCTS has been conducted in an objective and unbiased manner. Our team of experts has carefully considered all the data and information in order to provide a comprehensive assessment of the company’s current financial status. We always recommend conducting thorough research before investing. Our analysis of QUANEX BUILDING PRODUCTS will be a great starting point for you to begin your research. By signing up with us, you will gain access to more detailed information about this company as well as our other assessments. We have a strong commitment to delivering reliable results for our customers. You can rest assured that the information we provide is accurate and up-to-date. We are confident that our assessment of QUANEX BUILDING PRODUCTS will help you make the best investment decision for your future. More…
Peers
The company competes with Nihon Flush Co Ltd, PGT Innovations Inc, and Better Life Group in the global market for energy-efficient building products. Quanex Building Products Corp has a strong market position in the United States and Europe, and is expanding its presence in Asia.
– Nihon Flush Co Ltd ($TSE:7820)
Nihon Flush Co Ltd is a Japanese company that manufactures and sells plumbing fixtures and other related products. The company has a market capitalization of 23.73 billion as of 2022 and a return on equity of 10.59%. Nihon Flush Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.
– PGT Innovations Inc ($NYSE:PGTI)
PGT Innovations, Inc. engages in the designing, manufacturing, and distribution of impact-resistant windows and doors. It operates through the following segments: Residential and Commercial. The Residential segment offers aluminum and vinyl windows and doors for new construction, remodeling, and replacement applications. The Commercial segment provides aluminum windows and doors for institutional, office, healthcare, hospitality, government, and other commercial applications. The company was founded in 1980 and is headquartered in North Venice, FL.
– Better Life Group ($TWSE:1805)
The company has a market cap of 1.1 billion as of 2022 and a return on equity of -2.76%. The company is engaged in the business of providing life insurance and annuity products. The company has a strong presence in the US life insurance market and is one of the leading providers of life insurance and annuity products in the country.
Summary
QUANEX BUILDING PRODUCTS reported financial results for the first quarter of 2023, showing total revenue of USD 1.9 million, a decrease of 83.0% compared to the same period in the prior year. Net income was USD 261.9 million, a decrease of 1.9% year over year. For investors, this suggests that the company is currently struggling and may not be a good choice for potential investors.
However, the company has potential to improve its financial performance if it can get back on track and boost sales. Investors should conduct due diligence before making any investment decisions in QUANEX BUILDING PRODUCTS.
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