Quanex (NYSE:NX) Reports Strong Q1
From StockStory Communications: 2025-06-05 16:37:00
Quanex (NYSE:NX) reported Q1 CY2025 revenue of $452.5 million, beating analysts’ estimates by 3.2% with a 70% year-on-year growth. Non-GAAP profit per share was $0.60, surpassing consensus by 27%. Full-year revenue is expected to be around $1.85 billion, in line with analyst predictions. The company reconfirmed its EBITDA guidance of $275 million for the year, above estimates. Quanex Chairman George Wilson expressed satisfaction with Q2 results, citing revenue growth and cost synergies from the Tyman acquisition. The company also repurchased over $23 million of its shares. Quanex manufactures building products and has shown strong sales growth, with a 13.5% compounded annual growth rate over the last five years. The company’s Q1 results were impressive, with a 70% revenue increase and beat on EPS.
In terms of profitability, Quanex’s operating margin improved to 9% in Q1, up from 7.8% in the same quarter last year. The company’s EPS grew at a rate of 15% over the past five years, outpacing revenue growth. However, recent two-year declines in EPS raise concerns. Quanex’s Q1 EPS of $0.60 exceeded expectations, but was lower than the previous year. While the latest quarter showcased strong performance, long-term fundamentals and valuation should be considered before investing in Quanex.
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