Earnings Update: Quanex Building Products Corporation (NYSE:NX) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Quanex Building Products Corporation (NYSE:NX) filed its first-quarter result this time last week. The early response was not positive, with shares down 4.2% to US$19.13 in the past week. The results don't look great, especially considering that statutory losses grew 191% toUS$0.32 per share. Revenues of US$400m did beat expectations by 4.7%, but it looks like a bit of a cold comfort. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Quanex Building Products

Taking into account the latest results, the current consensus from Quanex Building Products' four analysts is for revenues of US$1.85b in 2025. This would reflect a major 28% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 542% to US$1.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.85b and earnings per share (EPS) of US$2.06 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

The consensus price target held steady at US$36.25, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Quanex Building Products analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$28.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quanex Building Products' past performance and to peers in the same industry. The analysts are definitely expecting Quanex Building Products' growth to accelerate, with the forecast 40% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Quanex Building Products is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Quanex Building Products. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Quanex Building Products analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 5 warning signs we've spotted with Quanex Building Products (including 2 which make us uncomfortable) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.