Quanex (NYSE: NX) reported Q1 EPS of $0.04, $0.10 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $196.6 million versus the consensus estimate of $189.9 million.

George Wilson, President and Chief Executive Officer, stated, “We had a good start to fiscal 2020 and we are optimistic looking ahead into the spring selling season as leading indicators for residential housing remain favorable. As such, we are reaffirming our full year 2020 guidance of $865 million to $885 million in net sales and $102 million to $110 million in Adjusted EBITDA*.

“Demand for our fenestration components remained strong in Europe and volumes were in line with our expectations in North America. On a consolidated basis, we were able to realize Adjusted EBITDA margin expansion of approximately 190 basis points in the first quarter, led again by our European segment where those margins improved by 100 basis points. Despite lower volumes in our cabinet components segment, we realized Adjusted EBITDA margin expansion of approximately 70 basis points, mainly as a result of ongoing and continued operational efficiency gains. Due to the typical seasonality in our business, we were a net borrower during the first quarter, but our balance sheet remains strong. In fact, as expected, free cash flow for the quarter improved significantly compared to the same period of 2019 and we repurchased approximately $4.6 million in stock.”

GUIDANCE:

Quanex sees FY2020 revenue of $865-885 million, versus the consensus of $875.6 million.

For earnings history and earnings-related data on Quanex (NX) click here.