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Jul 31, 2020

Quanex Q3 2020 Earnings Report

Reported better than expected Q3 2020 results, exceeding previous guidance amidst the COVID-19 pandemic.

Key Takeaways

Quanex Building Products reported a decrease in net sales due to softer demand related to the COVID-19 pandemic, but overall Q3 results exceeded expectations. Volumes increased steadily throughout the quarter, especially in Europe, and the company saw an increase in cash provided by operating activities. They repaid $78 million of bank debt and provided full year 2020 guidance of $832 million to $837 million in net sales and $97 million to $102 million in Adjusted EBITDA.

Third quarter results exceeded previous guidance despite COVID-19 impacts.

Volumes increased steadily, particularly in Europe.

Cash provided by operating activities increased by over 50% compared to the same period in 2019.

Repaid $78 million of bank debt during the quarter.

Total Revenue
$212M
Previous year: $238M
-11.1%
EPS
$0.34
Previous year: $0.41
-17.1%
Gross Profit
$49.7M
Previous year: $57.1M
-13.0%
Cash and Equivalents
$41.1K
Previous year: $10.7M
-99.6%
Free Cash Flow
$0
Previous year: $25.9M
-100.0%
Total Assets
$687M
Previous year: $680M
+1.0%

Quanex

Quanex

Forward Guidance

Quanex provided full year 2020 guidance of $832 million to $837 million in net sales and $97 million to $102 million in Adjusted EBITDA.