Latest news with #QuanexBuildingProducts'
Yahoo
3 days ago
- Business
- Yahoo
Quanex Building Products Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
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) 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.
Yahoo
18-04-2025
- Business
- Yahoo
Quanex Building Products (NYSE:NX) Will Be Hoping To Turn Its Returns On Capital Around
There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after briefly looking over the numbers, we don't think Quanex Building Products (NYSE:NX) has the makings of a multi-bagger going forward, but let's have a look at why that may be. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Quanex Building Products: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.024 = US$48m ÷ (US$2.2b - US$229m) (Based on the trailing twelve months to January 2025). Thus, Quanex Building Products has an ROCE of 2.4%. In absolute terms, that's a low return and it also under-performs the Building industry average of 15%. View our latest analysis for Quanex Building Products In the above chart we have measured Quanex Building Products' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Quanex Building Products . When we looked at the ROCE trend at Quanex Building Products, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 2.4% from 9.2% five years ago. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. If these investments prove successful, this can bode very well for long term stock performance. In summary, despite lower returns in the short term, we're encouraged to see that Quanex Building Products is reinvesting for growth and has higher sales as a result. Furthermore the stock has climbed 66% over the last five years, it would appear that investors are upbeat about the future. So while the underlying trends could already be accounted for by investors, we still think this stock is worth looking into further. One more thing: We've identified 5 warning signs with Quanex Building Products (at least 2 which are a bit unpleasant) , and understanding these would certainly be useful. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
