Trex Earnings: Here’s Why Investors Like These Results

Trex Co. Inc. (NYSE:TREX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.75%.

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Trex Co. Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 68.92% to $1.25 in the quarter versus EPS of $0.74 in the year-earlier quarter.

Revenue: Rose 12.28% to $107.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Trex Co. Inc. reported adjusted EPS income of $1.25 per share. By that measure, the company beat the mean analyst estimate of $1.12. It beat the average revenue estimate of $107.43 million.

Quoting Management: Chairman, President and CEO Ronald W. Kaplan commented, “This was an excellent quarter, with substantial increases in many key financial metrics. Most significantly, we achieved the best quarterly income performance in Trex’s history. Our new record reflects the continual enhancements we have been making to our product platform, operations, distribution network and marketing strategies.”

Key Stats (on next page)…

Revenue increased 133.75% from $46.16 million in the previous quarter. EPS increased to $1.25 in the quarter versus EPS of $-0.13 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.88 to a profit $1.02. For the current year, the average estimate has moved up from a profit of $2.41 to a profit of $2.81 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)