The AZEK Company (AZEK) came out with quarterly earnings of $0.39 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.10, delivering a surprise of 100%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.The AZEK Company, which belong ...

Table of contents Title of each class Trading Symbol Name of each exchange on which registered Class A Common Stock, par value $0.001 per share AZEK The New York Stock Exchange Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller reporting company o Emerging growth company o UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________________________________________ FORM 10-Q _____________________________________ ...

From a technical perspective, The AZEK Company (AZEK) is looking like an interesting pick, as it just reached a key level of support. AZEK recently overtook the 20-day moving average, and this suggests a short-term bullish trend.The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than ...

From a technical perspective, The AZEK Company (AZEK) is looking like an interesting pick, as it just reached a key level of support. AZEK recently overtook the 50-day moving average, and this suggests a short-term bullish trend.One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up ...

Financial Data and Key Metrics - Consolidated net sales for Q2 increased 11% YoY to $418 million, with adjusted net sales (excluding Vycom divestiture) up 17% YoY [22] - Residential segment net sales grew 18% YoY, driven by double-digit sell-through growth and strong demand [22] - For the six months ended March 31, 2024, consolidated net sales increased 11% YoY to $658.9 million, with adjusted net sales up 19% YoY [22] - Adjusted EBITDA for Q2 is expected to range between $167 million to $169 million, with margins between 25.3% to 25.6% [23] - Full-year 2024 guidance for consolidated net sales is raised to $1.407 billion to $1.438 billion, and adjusted EBITDA to $364 million to $380 million [27] Business Line Performance - Residential segment grew 19% YoY over the last 12 months and 20% YoY for the first six months of fiscal 2024 [12] - TimberTech brand saw increased sample orders, website visits, and over 1,000 new contractors added to its loyalty program [13] - New product innovations like TimberTech Composite Terrain Plus and horizontal cable railing are driving contractor productivity and incremental growth [14] - Siding and railing products are gaining market share and contributing to growth [14] Market Performance - Retail point-of-sale data showed healthy growth YoY, with total retail POS growth exceeding pro channel sell-through growth [21] - Channel inventories are down approximately 15% compared to historical averages [20] - The company expanded its recycling footprint with a new Texas-based operation, improving sourcing and reducing logistical costs [17] Strategic Initiatives and Industry Competition - The company is investing in R&D, innovation, brand awareness, and manufacturing operations to strengthen its position as a category leader [13] - TimberTech products received industry recognition, including the Green Builders 2024 Sustainable Product of the Year Award and HGTV Magazine's 2024 green list [14] - The company is focusing on expanding its recycling network, increasing the use of recycled materials, and lowering conversion costs [17] - Investments in new capacity, such as the Boise decking facility, are nearing planned utilization levels [17] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about driving above-market growth and margin expansion, with strong double-digit sell-through growth in the residential segment [18] - The company raised its fiscal 2024 outlook due to strong Q2 performance and increased confidence in execution [7] - Management expects the R&R market to remain flat, with mid-single-digit sell-through growth for the remainder of the fiscal year [25] - The company is targeting adjusted EBITDA margins of 27.5% earlier than planned, driven by margin expansion initiatives [31] Other Important Information - The company identified a $4 million FIFO accounting impact due to inventory restatement, which affected Q2 results [11] - Share repurchases totaled $25.2 million in Q2, with $125 million repurchased year-to-date and $76 million remaining under the authorization [24] - Capital expenditures for fiscal 2024 are expected to range between $85 million to $95 million, consistent with the target of 5% to 7% of revenue [29] Q&A Session Summary Question: Sell-through deceleration from double-digit to single-digit growth - Management clarified that the deceleration has not yet occurred and is based on a conservative assumption of a flat R&R market [35] - The company expects to end the year with channel inventories 10% to 15% below historical averages [37] Question: New business wins and incremental investments - The company highlighted recent wins in both retail and pro channels, with incremental costs associated with these transitions [40] - Investments are primarily focused on supporting channel transitions, including sales rep and servicing costs [42] Question: Drivers of market share gains - Share gains are attributed to product portfolio expansion, downstream sales force investments, and SG&A increases over the past two years [46] - The company is focusing on premium segments, with products like TimberTech receiving industry-leading fire resistance ratings [47] Question: Demand trends and consumer health - Management described demand as steady, with positive dealer sentiment and stable contractor backlogs [52][53] - The company expects potential acceleration in demand if interest rates decline [52] Question: Margin expansion and long-term targets - The company is confident in achieving its 27.5% adjusted EBITDA margin target earlier than planned, with further opportunities in recycling and product configuration [60] - Gross margins are expected to benefit from sourcing and recycling initiatives, as well as lower conversion costs [61] Question: Impact of inventory restatement on future profitability - The $4 million FIFO impact is the only expected effect on future profitability, with no further impacts anticipated [75][76] Question: Cost trends and pricing - Commodity prices and conversion costs remain stable, with no significant inflation or deflation expected [78] - Pricing is expected to remain flat for the remainder of fiscal 2024, with potential for more traditional pricing opportunities in 2025 [93] Question: Inorganic growth opportunities - The company is focused on tuck-in acquisitions that strengthen its core residential business and expand its recycling capabilities [96][97] Question: Composite decking market growth - The composite decking market is estimated to be growing around 5% YoY, with the company outperforming this growth rate [99]

2nd Quarter FY 2024 Earnings Presentation May 8, 2024 DISCLAIMER Important Notice This presentation contains “forward-looking statements” within the meaning of federal securities laws, including the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding future operations are forward-looking statements. In some cases, forward looking statements may be ...

Exhibit 99.1 May 8, 2024 The AZEK Company Announces Preliminary Second Quarter and Year-To-Date Fiscal 2024 Results; Raising Fiscal 2024 Outlook Strong Second Quarter Performance Driven by Residential Segment Execution, Increasing Brand Momentum and Realization of Margin Expansion Initiatives Growth Initiatives, including New Product Introductions, Consumer Engagement and Shelf Space Gains in Residential Pro and Retail Channels Driving Sustained Business Growth and Material Conversion PRELIMINARY FINANCIAL ...

The AZEK Company Inc. (AZEK) is scheduled to report second-quarter fiscal 2024 results on May 8 after the closing bell.In the last reported quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 100% and 2.7%, respectively.The company’s earnings surpassed expectations in each of the trailing four quarters, the average surprise being 41%.The Trend in Estimate RevisionThe Zacks Consensus Estimate for AZEK’s fiscal second-quarter adjusted earnings per share has moved up t ...

Wall Street analysts expect The AZEK Company (AZEK) to post quarterly earnings of $0.38 per share in its upcoming report, which indicates a year-over-year increase of 111.1%. Revenues are expected to be $414.7 million, up 9.8% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Pri ...

In the latest market close, The AZEK Company (AZEK) reached $45, with a +0.63% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.The the stock of company has fallen by 9.62% in the past month, lagging the Construction sector's loss of 5.9% and the S&P 500's loss of 3.97%.The investment community will be closely monitoring the performance of The AZEK Company in its forthcoming earnings re ...