The market expects Trex (TREX) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 28, 2024, might help the stock move higher if these key numbers are bett ...

With numerous short-term and long-term catalysts working in its favor, Trex makes for a compelling investment at today's prices. Since 2009, Trex (TREX -2.93%) has delivered total returns of roughly 3,200%, despite being tied to the highly cyclical United States housing industry. Trex, which has manufactured composite decking, railing, and adjacent products since 1998, grew rapidly to become the leader in the $8 billion market. Despite these incredible returns over the last 15 years, the company's share pri ...

WINCHESTER, Va., Aug. 21, 2024 (GLOBE NEWSWIRE) -- In a world increasingly focused on sustainability, Trex Company [NYSE:TREX] is committed to doing its part to tackle America's growing plastic waste problem. Through the NexTrex® Grassroots Movement, Trex works together with eco-minded businesses, municipalities, educational institutions and other organizations across the country to responsibly dispose of polyethylene (PE) plastic waste and give it new life as beautiful, durable and environmentally friendly ...

A tough economy is weighing on growth. Trex (TREX -21.49%) used cost controls to deliver an earnings beat despite lower-than-expected revenue, but investors were more focused on the company's weak forecast for future demand. The stock is plunging post earnings, down 21% as of 1:30 p.m. ET. Lagging revenue in a tough market Trex is a maker of composite decking and wood alternatives. The company is tied to the housing and remodeling industries, and its value proposition includes a higher up-front cost in exch ...

Financial Data and Key Metrics Changes - In Q2 2024, net sales were $376 million, a 6% increase from $357 million in Q2 2023 [13] - Net income rose to $87 million or $0.80 per diluted share, up 13% from $77 million or $0.71 per diluted share a year ago [15] - EBITDA increased by 11% to $130 million, representing 34.6% of net sales, compared to $117 million or 32.8% of net sales in the previous year [15] - Year-to-date net sales for the first half of 2024 totaled $750 million, a 26% increase compared to $595 million in the first half of 2023 [16] - Gross margin improved to 44.7%, an 80 basis point increase from 43.9% in Q2 2023 [14] Business Line Data and Key Metrics Changes - Premium product sell-through grew at a double-digit rate, while entry-level product sales were below expectations [6][14] - The introduction of new products, such as Trex Transcend Lineage decking and Trex Signature lines, has been successful in appealing to higher-income consumers [6][8] - The Trex Select T-Rail product has gained market acceptance, leading to dealer and contractor conversions [8] Market Data and Key Metrics Changes - The company anticipates a decline in sales due to accelerated weakness in the entry-level product category and reduced pro channel inventories [11] - Approximately 60% of the projected sales decline is attributed to channel inventory reductions, with the remainder due to softness in low-end products [11] - The outdoor living category remains more resilient than the general repair and remodel market, with Trex positioned to benefit from long-term growth drivers [12] Company Strategy and Development Direction - New product introductions are a strategic priority to drive future growth, with a focus on offering better options than competitors [8] - The company aims to increase penetration in the $3.3 billion railing market and has launched new premium railing products [9] - Trex is committed to sustainability and has published its 2023 sustainability report, highlighting its efforts in circularity and community engagement [20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite current economic uncertainty and consumer spending weakness, Trex is well-positioned for long-term success [12] - The company expects Q3 sales to range from $220 million to $230 million, with slight gross margin deterioration anticipated [19] - Management remains optimistic about the long-term demand for Trex products, driven by the aging decks in the U.S. and the trend of converting wood decks to composite [12][13] Other Important Information - Year-to-date operating cash flow was $20 million, a decrease from $108 million in 2023, primarily due to increased accounts receivable and inventory levels [17] - The company invested $73 million in capital expenditures related to the Arkansas manufacturing facility, which is on track for production startup in the first half of 2025 [17] Q&A Session Summary Question: Can you provide additional color on sell-through in the second half given channel destocking? - Management indicated that sell-through declined to a low single-digit in Q2 and expects a low single-digit decline in Q3 and a high single-digit decline in Q4, primarily due to channel inventory adjustments [22][23] Question: What is the company's willingness to continue ramping investments in new products? - Management affirmed that they will continue to pursue new markets and product investments despite the current operating environment [24] Question: Is there pressure on pricing, particularly at the low end? - Management noted that there has not been significant pricing pressure, and they have not seen deflationary factors affecting their business [38] Question: How is the company addressing inventory levels? - Management acknowledged elevated inventory levels due to new product rollouts and indicated a willingness to hold more inventory to service the market effectively [62] Question: What indicators suggest continued deceleration in sell-through into Q4? - Management mentioned tracking web metrics that indicated weakness starting in mid-June, which correlated with overall market performance [66]

Trex (TREX) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 1.27%. A quarter ago, it was expected that this maker of fencing and decking products would post earnings of $0.72 per share when it actually produced earnings of $0.82, delivering a surprise of 13.89%. Over the last four qua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14649 Trex Company, Inc. (Exact name of registrant as specified in its charter) Delaware 54-1910453 (State or other jurisdiction of incorpo ...

NEWS RELEASE TREX COMPANY REPORTS SECOND QUARTER 2024 RESULTS Second Quarter Sales Growth Led by Premium Products Gross Margin Expansion Driven by Higher Utilization and Production Efficiencies Guiding to Third Quarter Revenues of $220 million to $230 million Full Year Sales Guidance Adjusted to Reflect Softness in Entry-Level Consumer Demand and Uncertain Economic Outlook; Maintains Full Year EBITDA Margin Guidance of 30% to 30.5% WINCHESTER, Va. –August 6, 2024– Trex Company, Inc. (NYSE:TREX), the world's ...

WINCHESTER, Va., July 24, 2024 (GLOBE NEWSWIRE) -- When it comes to deck railings, cable and glass are among the hottest styles with today's homeowners but also among the most difficult to specify –until now. Trex Company [NYSE: TREX], the world's largest manufacturer of high-performance, low-maintenance composite decking and railing, and a leading brand of outdoor living products, has expanded its popular Trex Signature® Railing line with the introduction of X-Series™ Cable Rail and X-Series™ Frameless Gla ...

"The versatility of the X-Series post enables us to add two new specialty options to our premium railing line while also remaining SKU-conscious," noted Adkins. "We are excited to provide our channel partners with a sophisticated yet streamlined system that is as easy to sell as it is to order and install." Cable Rail Novel spring-loaded cables offer improved tension management so that cables are less prone to sag over time, while push-to-connect fittings eliminate swaging or crimping. Most notably, ball en ...