What Happened?
Shares of building products company Quanex (NYSE: NX) jumped 10.6% in the afternoon session after the company reported strong second-quarter 2025 (fiscal) results as sales and earnings exceeded Wall Street's forecasts. The outperformance was supported by early contributions from the recently acquired Tyman business.
Looking ahead, the company reaffirmed its full-year sales guidance, which was encouraging. Overall, this quarter featured some important positives.
The shares closed the day at $18.89, up 10.5% from previous close.
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What The Market Is Telling Us
Quanex’s shares are quite volatile and have had 18 moves greater than 5% over the last year. But moves this big are rare even for Quanex and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 21.1% on the news that the company reported a "beat and raise" quarter. Quanex blew past analysts' revenue and EPS expectations.
Looking ahead, its full-year revenue guidance came in higher than Wall Street's estimates. Notably, given the anticipated contribution from the acquisition of Tyman, Quanex was able to raise net sales and adjusted EBITDA guidance for the full year. Overall, we think this was a solid quarter with some key areas of upside.
Quanex is down 15.3% since the beginning of the year, and at $19.93 per share, it is trading 41.9% below its 52-week high of $34.28 from July 2024. Investors who bought $1,000 worth of Quanex’s shares 5 years ago would now be looking at an investment worth $1,398.
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