Quanex Q3 Adjusted EPS Beats by 20% on Pricing Gains and Cost Cuts
NX sits 70% above its 52-week low of $11.04.
Summary
Quanex delivered a strong Q3 with adjusted EPS of $0.79, beating the $0.66 consensus by 20%. Sales of $501.8M slightly exceeded expectations, and adjusted EBITDA of $72.7M topped estimates. The company repaid $42.25M in debt and repurchased $1.7M of shares, signaling confidence in cash generation. Management plans to continue prioritizing debt reduction and buybacks in Q4. This follows the 8-K filed today confirming the swing to a $26.5M profit from a $276M loss a year ago, with margin expansion driven by pricing improvements and lower expenses. The stock trades at 9x forward earnings, below its 10x three months ago, and analysts maintain a strong buy with a $27 median target.
At the time of this announcement, NX was trading at $18.76 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $861.6M. The 52-week trading range was $11.04 to $22.98. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.