Financial News
Trex (TREX) Q3 Earnings Report Preview: What To Look For
Composite decking and railing products manufacturer Trex Company (NYSE:TREX) will be reporting results tomorrow after market close. Here’s what you need to know.
Trex missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $376.5 million, up 5.6% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ organic revenue estimates.
Is Trex a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Trex’s revenue to decline 25.8% year on year to $225.4 million, a reversal from the 61.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at Trex’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Lennox reported revenues up 9.6%, topping estimates by 5.9%. Simpson traded down 5.5% following the results while Lennox was up 4.3%.
Read our full analysis of Simpson’s results here and Lennox’s results here.
Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Trex is down 3.4% during the same time and is heading into earnings with an average analyst price target of $77.56 (compared to the current share price of $64.31).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.