HOUSTON - Quanex (NYSE:NX) Building Products Corporation (NYSE:NX) reported better-than-expected third quarter results on Thursday, with earnings and revenue topping analyst estimates despite softer market demand.
The building products manufacturer posted adjusted earnings per share of $0.73 for the quarter ended July 31, beating the consensus estimate of $0.71. Revenue came in at $280.3 million, above analysts' expectations of $278.46 million but down 6.4% YoY from $299.6 million.
"Overall, the results we reported for the third quarter of 2024 were consistent with our expectations," said George Wilson, Chairman, President and CEO. "Consistent with the seasonality of our business, volumes increased across all operating segments in the third quarter of this year when compared to the second quarter. However, when compared to the prior year, demand remained soft."
The company saw revenue declines across all segments compared to last year. North American Fenestration sales fell 3.9% to $170.3 million, while North American Cabinet Components revenue dropped 7.1% to $51.4 million. European Fenestration sales decreased 10.8% YoY excluding foreign exchange impacts.
Quanex generated free cash flow of $40.1 million during the quarter. The company closed its acquisition of Tyman on August 1, which it expects to be accretive to earnings within the first full year.
For fiscal 2024, Quanex now forecasts revenue of $1.275 billion to $1.285 billion and adjusted EBITDA of $171 million to $176 million, incorporating the Tyman acquisition.
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