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Oct 31, 2021

Quanex Q4 2021 Earnings Report

Reported record revenue growth and earnings, with improved balance sheet and liquidity, and authorized a new share repurchase program.

Key Takeaways

Quanex Building Products reported a 14.2% increase in net sales growth for the fourth quarter and the board authorized a new $75 million share repurchase program. Demand for the company's products remained strong throughout the fiscal year, which continues today.

Net sales growth of 14.2% was reported during the three months ended October 31, 2021.

Demand for the products remained strong throughout the fiscal year.

A new $75 million share repurchase program was authorized.

Liquidity increased to $322.6 million as of October 31, 2021.

Total Revenue
$292M
Previous year: $255M
+14.2%
EPS
$0.62
Previous year: $0.67
-7.5%
Gross Profit
$65M
Previous year: $66.2M
-1.9%
Cash and Equivalents
$40.1K
Previous year: $51.6M
-99.9%
Free Cash Flow
$0
Previous year: $75.1M
-100.0%
Total Assets
$0
Previous year: $692M
-100.0%

Quanex

Quanex

Forward Guidance

Demand remains strong, but ongoing supply chain disruptions continue to create day-to-day operational challenges and ultimately reduce visibility in the near-term. The company feels confident in their ability to realize margin expansion on a consolidated basis in fiscal 2022, second half weighted, and remain cautiously optimistic for the year. They intend to re-visit guidance when they report earnings for the first quarter of 2022.

Positive Outlook

  • Demand remains strong
  • Confident in ability to realize margin expansion on a consolidated basis in fiscal 2022
  • Cautiously optimistic for the year

Challenges Ahead

  • Ongoing supply chain disruptions continue to create day-to-day operational challenges
  • Reduced visibility in the near-term
  • Premature to give guidance at this time