Wedbush Reiterates Outperform on Quanex (NX) Following 2Q Report
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Wedbush maintained an Outperform rating and $23.00 price target on Quanex Building Products (NYSE: NX) following the company's 2Q earnings report. NX reported revenue of $229.5 million ahead of the consensus estimate of $228.9 while adjusted EBITDA of $24.3 million topped $22.6 million estimate.
Analyst Al Kaschalk commented, "2Q adjusted EBITDA tops expectations while adjusted EPS in-line despite higher share count; raises FY16 adjusted EBITDA guidance. While our investment thesis on Quanex Building Products (NX) is under review, we are currently maintaining our OUTPERFORM rating following 2Q operating results that benefited from ongoing productivity improvements. Adjusted EBITDA (AEBITDA) and margin topped our expectation by $1.2 million and 50bps on stronger operational performance within North American (NA) Engineered Components (NAEC) and European (EU) Engineered Components (EEC) despite in-line revenue. Following another quarter of operational strength and nearly 6% organic revenue growth, management raised its EBITDA guidance 2.3% from prior midpoint. During Wednesday’s earnings conference call, we look for further commentary on NA margin improvement, investments in Woodcraft Industries (semi-custom cabinets) and endmarket demand in the EU which we believe exceeds NA. With management delivering improved results and raising their outlook, we expect shares to trade higher ahead of the earnings conference call scheduled for Wednesday morning."
For an analyst ratings summary and ratings history on Quanex Building Products click here. For more ratings news on Quanex Building Products click here.
Shares of Quanex Building Products closed at $19.92 yesterday.
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