Composite decking and railing products manufacturer Trex Company (NYSE: TREX) will be announcing earnings results this Tuesday afternoon. Here’s what you need to know.
Trex missed analysts’ revenue expectations last quarter, reporting revenues of $285.3 million, up 22.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
Is Trex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Trex’s revenue to decline 13.7% year on year, in line with the 14.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Trex has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Trex’s peers in the home construction materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Builders FirstSource’s revenues decreased 12.1% year on year, missing analysts’ expectations by 2.8%, and Simpson reported revenues up 4.2%, topping estimates by 1.6%. Builders FirstSource’s stock price was unchanged after the resultswhile Simpson was up 5%.
Read our full analysis of Builders FirstSource’s results here and Simpson’s results here.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 7.1% on average over the last month. Trex’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $44.58 (compared to the current share price of $41.75).
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