NEW YORK (TheStreet) -- Quanex Building Products (NX) shares closed trading up 10.25% to $19.15 on Wednesday after the residential building engineering products supplier reported its second quarter earnings before the opening bell today.
The Houston-based company reported second quarter earnings of $2.3 million, or 7 cents per diluted share on an adjusted basis, 7 cents better than the break even quarter analysts forecast.
Revenue for the period rose 5.2% year over year to $142 million, matching analysts' expectations for the quarter.
"While inclement weather caused a slow start to the building and construction season and our fiscal second quarter, volumes rebounded nicely and allowed us to deliver solid revenue and earnings results. We are starting to see tangible improvements in our vinyl extrusion business, even though we do not expect to reap the full benefits of the capital investments until the fourth quarter," said CEO Bill Griffiths.
TheStreet Ratings team rates QUANEX BUILDING PRODUCTS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUANEX BUILDING PRODUCTS (NX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins."