Wrapping up Q4 earnings, we look at the numbers and key takeaways for the home construction materials stocks, including Quanex (NYSE:NX) and its peers.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at home construction materials stocks, starting with Owens Corning (NYSE:OC).
Building products company Quanex (NYSE:NX) reported Q4 CY2024 results exceeding the market’s revenue expectations, with sales up 67.3% year on year to $400 million. The company expects the full year’s revenue to be around $1.85 billion, close to analysts’ estimates. Its non-GAAP profit of $0.19 per share was significantly above analysts’ consensus estimates.
Quanex has gotten torched over the last six months - since August 2024, its stock price has dropped 25.5% to $20.73 per share. This may have investors wondering how to approach the situation.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the home construction materials industry, including Quanex (NYSE:NX) and its peers.
Looking back on home construction materials stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Hayward (NYSE:HAYW) and its peers.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how home construction materials stocks fared in Q3, starting with Fortune Brands (NYSE:FBIN).
Let’s dig into the relative performance of Trex (NYSE:TREX) and its peers as we unravel the now-completed Q3 home construction materials earnings season.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at American Woodmark (NASDAQ:AMWD) and its peers.
We are looking for value in the Industrials Sector because we are still in a strong bull market that has been not only one of the longest on record, but also has seen the S&P 500 get to one of its lofty valuations ever.
Building products company Quanex (NYSE:NX) met Wall Street’s revenue expectations in Q3 CY2024, with sales up 66.6% year on year to $492.2 million. Its GAAP loss of $0.30 per share decreased from $0.83 in the same quarter last year.
Over the past six months, Quanex’s shares (currently trading at $28.81) have posted a disappointing 9.6% loss, well below the S&P 500’s 13% gain. This might have investors contemplating their next move.
Quanex Building Products expands its global reach with the acquisition of Tyman plc, bolstering its position as a premier supplier of building solutions. With a $1.1 billion enterprise value, this move enhances Quanex's geographic presence and product diversity, promising lucrative growth opportunities for investors.
