Composite decking and railing products manufacturer Trex Company (NYSE: TREX) will be reporting earnings this Monday after market hours. Here’s what to look for.
Trex beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $340 million, down 9% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and a narrow beat of analysts’ adjusted operating income 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 be flat year on year at $377.1 million, slowing from the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.4% on average.
Looking at Trex’s peers in the home construction materials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Masco’s revenues decreased 2% year on year, beating analysts’ expectations by 2.4%, and Simpson reported revenues up 5.7%, topping estimates by 5.3%. Masco traded up 4.7% following the results while Simpson was also up 10.7%.
Read our full analysis of Masco’s results here and Simpson’s results here.
Investors in the home construction materials segment have had steady hands going into earnings, with share prices flat over the last month. Trex is up 10% during the same time and is heading into earnings with an average analyst price target of $69.94 (compared to the current share price of $63.45).
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