Trex (TREX) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Trex, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Trex is expected to report quarterly earnings of $0.56 per share, reflecting a year-over-year increase of +51.4% [3]. - Revenues are projected to reach $302.39 million, which is a 29.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 4.34% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Trex is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.69% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with a strong predictive power for positive readings [9][10]. - Trex's current Zacks Rank is 4 (Sell), complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Trex exceeded expectations with earnings of $0.74 per share against an estimate of $0.72, resulting in a surprise of +2.78% [13]. - Over the past four quarters, Trex has beaten consensus EPS estimates four times [14]. Industry Context - Another company in the Zacks Building Products - Wood industry, Potlatch, is expected to report earnings of $0.15 per share, indicating a year-over-year change of +275% [18]. - Potlatch's revenues are expected to be $289.5 million, up 13.5% from the previous year, but it has an Earnings ESP of -1.14% and a Zacks Rank of 4 [19][20].