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.
基準分析師魯本·迦納重申買入評級Quanex建築產品公司(紐約證券交易所代碼：NX)，將目標價上調至33美元。
The company recently reported Q3 results, where earnings and revenues beat estimates.
該公司最近公佈了第三季度業績，收益和收入超出預期。
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.
這位分析師指出，該公司在第三季度看到了宏觀/銷量壓力，而堅實的運營控制導致了創紀錄的季度利潤率，EBITDA和收益分別比共識高出約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.
鑑於強勁的FCF前景(將2013財年指引上調至創紀錄的9,000萬-9,500萬美元)，分析師預計，對該業務的嚴格並購要求可能會增加來年機會性回購或增加股息的可能性，或兩者兼而有之。
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.
迦納補充說，雖然管理層指出通脹壓力已基本減弱，但持續不溫不火的宏觀前景可能會導致2014財年(下一財年)喜憂參半。
Following the results, the analyst raised FY23 estimates from $2.15 to $2.45.
財報公佈後，該分析師將23財年的預期從2.15美元上調至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.
這位分析師補充說，在第三季度，每個部門都實現了又一個季度的環比和同比利潤率增長，原因是運營/採購方面的好處超過了通脹，以及儘管銷量較低，但SG&A控制很強。
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，管理層重申了將進一步償還債務作為其首要任務的決定，本季度約2500萬美元的償還證明瞭這一點，使公司達到淨債務中性。
The company reiterated its belief that the destocking trend has reduced, particularly in Europe, the analyst notes.
這位分析師指出，該公司重申，它相信去庫存趨勢已經減少，特別是在歐洲。
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警告說，不斷上升的利率(導致有限的現房成交量)以及潛在的大流行驅動的拉動後遺症，可能會使近期回歸穩健的銷量遊戲具有挑戰性。
For FY23, the analyst increased revenue estimates from $1.123 billion to $1.128 billion.
該分析師將23財年營收預期從11.23億美元上調至11.28億美元。
Price Action: NX shares are trading lower by 1.01% to $28.18 on the last check Wednesday.
價格行動：在週三的最後一次檢查中，NX的股價下跌了1.01%，至28.18美元。
