Quanex Stocks for NX: An Assessment

Quanex Building Products Corporation is a manufacturer for windows and doors

(fenestration), industry involving inclusion of glass spacers, extruded vinyl profiles, prevision
formed metal and wood products for OEMs among others. Companys segments of operation
include Engineered Products, International Extrusion and Corporate as well as others. It also
manufactured non fenestration components and products including solar panel sealants, water
retention barriers, hardware and conservatory roof components. It also serves as a customer base
in the US and UK.

Analysis of Earnings
Analysts and investors are checking to see if the earning results around 31 May 2016 are
satisfactory. In the previous report, company announced EPS of USD-0.02. Zacks has estimated
consensus estimate of USD -.012 for the period ending April 30th. There was some gap between
estimate and actual creating a surprise factor of 83.33 percent. Future earnings projections
indicate the stock will hit USD 26 with conservative analysts pegging the value at USD 23 such
as TipRank.

First Quarter Results For Quanex

In a press release, Bill Griffiths CEO and President as well as Chairman of Quanex commented
that Despite the fact that the first quarter of each year is typically challenging for our industry,

we are off to a strong start in 2016 and at this time we are confident the full year 2016 guidance
we previously provided is achievable. Our continued focus on operational excellence is the
primary reason for the margin improvements during the quarter, most notably in our vinyl
profiles business in North America. As stated previously, we anticipated realising benefits of the
capital investment we made in this business by the end of 2015. We clearly saw the positive
impact of this in the fourth quarter and that improvement carried forward into the first quarter of
2016. In addition, the integration of HL Plastics and Woodcraft is progressing as planned and
both had a positive impact on first quarter results.
First Quarter 2016 Highlights
1. Adjusted EBITDA rose to US $18.2 million as against USD 2.6 million in Q1, 2015
2. Adjusted EBITDA margin rose by close to 700 points to 9% versus Q1, 2015
3. Adjusted net loss from continuing operations of US$ 0.8 million or US $0.02 million per
diluted share versus adjusted net loss of US #.0 million or US $0.08 per diluted share in
the first quarter of 2015
4. Quanex has generated net sales of US $201.5 million in Q1, 2015. This is an increase of
58 percent since the first quarter of 2015. Increase was driven by acquisition of
companies and steady growth across product lines offset by foreign exchange impact.
5. EBITDA rose to US $10.8m in January 31. Company reached EBITDA of US $ 18.2 m
for the quarter compared to 15.6 m in the same period last year.
6. After making adjustments for foreign currency transaction loss in addition to this,
Quanex experienced adjusted net loss from continuing operations of US $0.8m or US
$0.02 per diluted share to the quarter compared to adjusted net loss of US $3 m or $0.08
per diluted share in Q1, 2015.

Conclusion
Recent events indicate the company is doing well and it would be wise to invest in Quanex
(NYSE:NX) given that administration is seamless and Companys BoD has declared quarterly
cash dividend of US $0.04 per share on the common stock payable to shareholders on record.
Photo Source: LinkedIn
Published at: http://daddyinsider.com/index.php/2016/06/06/quanex-stocks-nx-assessment/