Quanex Building Products Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Yahoo

a day ago

Quanex Building Products Corporation (NYSE:NX) just released its second-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.0% to hit US$452m. Quanex Building Products also reported a statutory profit of US$0.44, which was an impressive 54% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Quanex Building Products after the latest results.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
Taking into account the latest results, the most recent consensus for Quanex Building Products from four analysts is for revenues of US$1.85b in 2025. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 323% to US$1.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.85b and earnings per share (EPS) of US$1.48 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Quanex Building Products
The consensus price target was unchanged at US$33.75, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Quanex Building Products analyst has a price target of US$38.00 per share, while the most pessimistic values it at US$28.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Quanex Building Products' growth to accelerate, with the forecast 29% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Quanex Building Products to grow faster than the wider industry.
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Quanex Building Products following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Quanex Building Products going out to 2026, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Quanex Building Products (2 can't be ignored) you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.