Quanex shares jump on rosier Q1 earnings outlookadmin
Shares of Quanex Corp. rose Wednesday after the company adjusted its earnings forecast for the first quarter of 2007.
The Houston-based company, which makes materials and components for the vehicular products and building markets, sees earnings per share from continuing operations coming in at 45 cents to 50 cents per share, slightly up from its previous guidance of 35 cents to 50 cents per share.
Six analysts polled by research firm Thomson First Call, are expecting first-quarter earnings to match Quanex’s previous outlook range of 35 cents to 50 cents per share, and expect a mean estimate of 42 cents.
Meanwhile, despite upping its earnings outlook, Quanex expects pocket lower sales across its business segments.
The vehicular products segment, whose primary market driver is North American light-vehicle builds, expects to report lower net sales and operating income in the fiscal quarter compared to the fiscal first quarter 2006. MACSTEEL bar shipments are forecast to be down 5 percent versus the year ago quarter. Light vehicle builds are estimated to be down 6 percent over the same periods.
The building products division, whose primary market drivers are U.S. housing starts and remodeling activity, expects to report lower net sales and operating income in the fiscal quarter compared to the fiscal first quarter 2006.
Net sales it the company’s engineered products business, a producer of window and door components, are expected to be down 20 percent compared to the fiscal first quarter 2006.
The company plans to report its first-quarter results on Feb. 27.
Quanex shares ended Wednesday’s trading session at $37.54, up 8 percent.
Published January 17, 2007 by the Houston Business Journal