Trex Earnings Preview: Can This Streak Continue?

Trex Co. (NYSE:TREX) will report earnings before markets open on Friday, May 3rd. Trex Company, Inc. manufactures non-wood decking alternative products. The Company markets its products under the Trex brand name. Trex’s products are made from waste wood fibers and reclaimed polyethylene and are used for residential and commercial decking, and marketed under the Trex brand name and Trex Wood-Polymer trademark.

Here is your Cheat Sheet to Trex Co. Earnings:

Earnings Expectations: Analysts expect earnings of $1.12 per share on revenues of $107.43 million. Currently, the company’s P/E ratio stands at 306.00.

Analyst Trends:

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 is a profit of $2.81, which is better than the estimate ninety days ago.

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Earnings Trends:

Here’s how Trex Co. has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 329.19 272.29 317.69 266.79 307.35
Diluted EPS ($) 0.50 -1.12 -0.66 -0.75 0.16

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 51.46 96.10 94.28 70.82 46.16
Diluted EPS ($) -1.183 0.74 0.48 -0.86 -0.2159

Past Performance:
Trex Co. has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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