Quanex's Strategic Moves Pay Off: Analyst Raises Price Target Amid Operational Gains
Quanex's Strategic Moves Pay Off: Analyst Raises Price Target Amid Operational Gains
Given the strong FCF outlook (raised FY23 guide to a record $90 million-$95 million), the analyst expects stringent M&A requirements for the business to likely increase the probability of opportunistic buybacks or a dividend increase in the coming year, or both.Benchmark analyst Reuben Garner reiterated a Buy rating on Quanex Building Products Corporation (NYSE:NX), raising the price target to $33.
基准分析师鲁本·加纳重申买入评级Quanex建筑产品公司(纽约证券交易所代码：NX)，将目标价上调至33美元。
The company recently reported Q3 results, where earnings and revenues beat estimates.
该公司最近公布了第三季度业绩，收益和收入超出预期。
The analyst notes that the company saw macro/volume pressure in Q3, while solid operational controls led to record quarterly margins, with EBITDA and earnings ~20% and ~50% ahead of consensus, respectively.
这位分析师指出，该公司在第三季度看到了宏观/销量压力，而坚实的运营控制导致了创纪录的季度利润率，EBITDA和收益分别比共识高出约20%和~50%。
Given the strong FCF outlook (raised FY23 guide to a record $90 million-$95 million), the analyst expects stringent M&A requirements for the business to likely increase the probability of opportunistic buybacks or a dividend increase in the coming year, or both.
鉴于强劲的FCF前景(将2013财年指引上调至创纪录的9,000万-9,500万美元)，分析师预计，对该业务的严格并购要求可能会增加来年机会性回购或增加股息的可能性，或两者兼而有之。
While management noted that inflationary pressures have primarily abated, a continued tepid macro view could lend to a mixed FY24 (next fiscal year), Garner adds.
加纳补充说，虽然管理层指出通胀压力已基本减弱，但持续不温不火的宏观前景可能会导致2014财年(下一财年)喜忧参半。
Following the results, the analyst raised FY23 estimates from $2.15 to $2.45.
财报公布后，该分析师将23财年的预期从2.15美元上调至2.45美元。
During Q3, each segment posted another quarter of sequential and y/y margin gains on operational/sourcing benefits over inflation and strong SG&A controls despite lighter volumes, the analyst adds.
这位分析师补充说，在第三季度，每个部门都实现了又一个季度的环比和同比利润率增长，原因是运营/采购方面的好处超过了通胀，以及尽管销量较低，但SG&A控制很强。
Management reiterated its decision to pursue further debt paydown as its highest priority, as evidenced by the ~$25 million paydown during the quarter, bringing the company to net debt neutral, Garner notes.
Garner指出，管理层重申了将进一步偿还债务作为其首要任务的决定，本季度约2500万美元的偿还证明了这一点，使公司达到净债务中性。
The company reiterated its belief that the destocking trend has reduced, particularly in Europe, the analyst notes.
这位分析师指出，该公司重申，它相信去库存趋势已经减少，特别是在欧洲。
However, rising rates (leading to limited existing home turnover) and a potentially pandemic-driven pull-forward hangover could make a return to solid volume games challenging in the near term, Garner cautioned.
然而，Garner警告说，不断上升的利率(导致有限的现房成交量)以及潜在的大流行驱动的拉动后遗症，可能会使近期回归稳健的销量游戏具有挑战性。
For FY23, the analyst increased revenue estimates from $1.123 billion to $1.128 billion.
该分析师将23财年营收预期从11.23亿美元上调至11.28亿美元。
Price Action: NX shares are trading lower by 1.01% to $28.18 on the last check Wednesday.
价格行动：在周三的最后一次检查中，NX的股价下跌了1.01%，至28.18美元。
