Quanex Building Products Corporation (NYSE: NX)

Quanex Building Products Corporation (NX), a global company that provides components for the window and door industry yesterday reported their fiscal second quarter 2017 financial results.

Quanex reported a fiscal second quarter net income of $1.5 million. Quanex reported second quarter adjusted earnings of $0.11 per share. Quanex reported fiscal second quarter revenues of $209.1 million.   

Quanex Building Products Corporation CEO’s  Comments

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, “Second quarter results came in as expected, despite weather related weakness in April.  We completed the consolidation of our U.S. vinyl profiles business ahead of schedule and we are pleased with the progress of negotiations held with various cabinet customers related to margin dilutive revenue.  In fact, we realized slight margin expansion in the cabinet components segment despite continued excessive overtime costs.  We also saw margin expansion in our European engineered components segment.  As anticipated, revenues were down year-over-year in our North American engineered components segment, driven by a further $17 million reduction due to the previously disclosed re-sourcing effort by a large vinyl profiles customer.  Despite the lower top line, margins remained flat in this segment.  The U.S. vinyl profiles business consolidation is behind us, and while still early, we feel we have turned the corner at Woodcraft.  As such, we are confident in achieving our second half margin expansion and cash flow expectations and are comfortable with our previously disclosed 2017 guidance.”  Globe Newswire

NX Technical Analysis

NX opened trading yesterday at $19.30 which was down from the previous day’s trading close of $19.45. NX closed trading yesterday at $19.40 and spiked up after market to $20.34, equivalent to a 5% increase from the closing price. Taking a look at the daily chart we can see the last time NX traded above these levels we have to go back to May 9th when it traded at $20.50.

Taking a closer look at the daily chart we can see that before the spike up NX had been in an overall downward trend dating back to April 26th when it traded at $21.15. NX has a float of 30.39 million shares and traded below the normal daily trading volume on Tuesday.

For trading purposes, I would like to see NX open trading on Wednesday above $20.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

Company Profile

Quanex Building Products Corporation, together with its subsidiaries, provides components for the window and door industry worldwide. The company operates through two segments, Engineered Products and International Extrusion. It offers flexible insulating glass spacers; extruded vinyl profiles; window and door screens; and precision-formed metal and wood products, as well as solar panel sealants, wood flooring, trim moldings, vinyl decking, fencing, water retention barriers, hardware, conservatory roof components, kitchen and bath cabinet doors and components, solar edge tapes, and other products.

The company sells its products to original equipment manufacturers in the residential new construction, and residential remodeling and replacement markets through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation is headquartered in Houston, Texas.  Yahoo Finance