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Quanex Building slips on Q4 earnings miss

Published 12/11/2018, 10:11 AM
Updated 12/11/2018, 10:11 AM
© Reuters.  Quanex Building slips on Q4 earnings miss

© Reuters. Quanex Building slips on Q4 earnings miss

  • Quanex Building Products (NX -14.1%) says that market growth and price increases led to underlying growth of ~6% in Q4; however, sales in Aug. & Sept. were lower than expected.
  • Sales by segment: Engineered components: $179.6M (+3.7% Y/Y); Cabinet components: $66.1M (+8.2%)
  • Earnings were negatively impacted by inflationary pressures and higher SG&A expense; adj. EBITDA declines 395bps to 10.3%; operating margin down 220bps to 4.8%
  • During the quarter, repurchased ~$32M in stock,as well as maintains leverage ratio of 2.0x; additionally, paid down ~$28M of bank debt in FY18.
  • The company says that at macro level, new construction segment is expected to decline; however repair & remodel segment will continue to strengthen, hence for FY19 expects revenue growth of 4% to 6% to ~$925M-$943M vs. consensus of $923.73M
  • FY19 adj. EBITDA to be ~$97M-$107M.
  • Previously: Quanex Building Products misses by $0.21, misses on revenue (Dec. 10)
  • Now read: DSW beats by
  • Now read: DSW beats by $0.18, beats on revenue
  • .18, beats on revenue


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