Trex Earns 42 Cents per Share

After the closing bell, Trex (TREX) reported fiscal Q1 earnings of 42 cents per share. That’s up 17% over last year. Sales rose 23% to $246 million. Wall Street had been expecting 38 cents per share.

“Sustained demand for Trex Residential products and accelerated market share gains from wood drove first quarter sales growth, laying the foundation for another year of strong double-digit revenue growth in 2021. At the same time, capacity expansion at our new state-of-the-art manufacturing facility in Virginia is coming on faster than originally anticipated. We now expect all lines in our new plant to be fully operational by the end of May, thirty days ahead of schedule. When completed, our capacity expansion investment will provide approximately 70% more capacity when compared to 2019 volume levels and will give us an important competitive advantage in today’s dynamic composite decking marketplace. The additional capacity further reinforces our position as the industry leader and most efficient manufacturer of high-performance, wood-alternative decking and railing,” said Bryan Fairbanks, President and CEO.

Trex expects Q2 revenue growth of 36%. During the quarter, the company bought back 504,275 shares for $46 million under its stock repurchase program.

For Q2, Trex expects sales of $295 million to $305 million. The midpoint is growth of 36% over last year’s Q2. Wall Street had been expecting $278.06 million.

Posted by on May 10th, 2021 at 4:15 pm


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