Quanex Q3 Earnings Rise, Exceed Estimates; Slashes Annual EBITDA Outlook

(RTTNews) - Screen doors maker Quanex Building Products Corp. (NX) Tuesday reported third-quarter earnings which increased, helped by overall revenue growth and lower overheads. Earnings also topped analysts' estimates.

The company, however, lowered its annual EBITDA guidance due to escalating operating costs from higher equipment failures, and an increase in vinyl resin prices.

For the three months to July, net earnings stood at $8.05 million or $0.21 per share, up from $4.97 million or $0.13 per share a year earlier.

Analysts polled by Thomson-Reuters had a consensus earnings estimate of $0.20. Analysts' estimates typically exclude one-time items.

EBITDA totaled $21.2 million, compared with $17.7 million a year earlier.

Quarterly net sales increased to $169.98 million from $156 million a year ago. Analysts expected sales of $166.06 million.

For the full year, the company maintained its 8 and 9 percent revenue guidance, but slashed its EBITDA outlook to $53 million and $55 million, from the prior guidance range of $55 million and $60 million.

On September 5, the Board recommended a quarterly dividend of $0.04 per share, payable on September 30 to shareholders of record on September 30.

The company also authorized on September 5 a $75 million share repurchase program, which has no expiration date or limit on number of shares that can be purchased.