Trex (TREX) Beats Q2 Earnings and Revenue Estimates

Company Performance - Trex reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, but down from $0.80 per share a year ago, representing an earnings surprise of +2.78% [1] - The company achieved revenues of $387.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.62% and up from $376.47 million year-over-year [2] - Over the last four quarters, Trex has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Trex shares have declined approximately 8.1% since the beginning of the year, contrasting with the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $309.91 million, and for the current fiscal year, it is $2.22 on revenues of $1.23 billion [7] - The estimate revisions trend for Trex was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Building Products - Wood industry, to which Trex belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]