Trex shares leap by 6% as Q3 results top estimates, guidance reaffirmed

WINCHESTER, Va. - Trex Company, Inc. (NYSE:TREX ) saw its shares jump 6.68% after the wood-alternative decking manufacturer reported third quarter results that exceeded analyst expectations and reaffirmed its full-year guidance.

The company posted earnings per share of $0.37, surpassing the consensus estimate of $0.32. Revenue came in at $234 million, also beating Wall Street's forecast of $225.42 million. While sales declined 23% year-over-year, they were ahead of the company's own expectations.

Trex attributed the better-than-anticipated performance to sustained consumer demand for its premium-priced products. The company estimates sell-through of these products increased by high-single digits compared to last year.

"Our third quarter results were ahead of our expectations led by sustained consumer demand for our premium-priced products," said Bryan Fairbanks, President and CEO of Trex.

Looking ahead, Trex reaffirmed its full-year 2024 revenue guidance of $1.14 billion. The company also said it expects to achieve the high end of its EBITDA margin guidance range of 30.5%.

Management expressed confidence in Trex's long-term outlook, noting it repurchased $100 million worth of shares in the third and early fourth quarters. The company sees significant growth opportunities ahead as it expands its presence in the $3.3 billion railing market.

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Source: Investing.com