Free Research Report as Trex’s Quarterly Sales Surged 32% and EPS Soared 162%

Stock Monitor: Beacon Roofing Supply Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 05, 2017 / Active-Investors free earnings report on Trex Co., Inc. (NYSE: TREX) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=TREX. The Company reported its third quarter fiscal 2017 operating results on October 30, 2017. The world’s number one brand of decking and railing and leader in high-performance, low-maintenance outdoor living products surpassed sales and earnings expectations, and provided guidance for the upcoming quarter and fiscal year. Register today and get free access to our complimentary member’s area where many more reports are available:

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Active-Investors.com is currently working on the research report for Beacon Roofing Supply, Inc. (NASDAQ: BECN), which also belongs to the Industrial Goods sector as the Company Trex. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=BECN

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Trex most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

www.active-investors.com/registration-sg/?symbol=TREX

Earnings Highlights and Summary

Trex’s net sales were $140.19 million for Q3 2017, an increase of 32% compared to $106.17 million in Q3 2016. The Company’s revenue numbers topped analysts’ estimates of $125 million.

For Q3 2017, Trex’s consolidated gross margin was 39.4% compared to 28.2% in Q3 2016, and up 190 basis points versus adjusted gross margin of 37.5% in the prior year’s comparable quarter. This strong performance was driven by a manufacturing cost reduction program, lower raw material costs, and an increased capacity utilization.

During Q3 2017, Trex’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased 47% to $34.9 million, or 24.9% of total sales, from the adjusted warranty reserve of $23.8 million in the prior year’s same quarter. The Company’s selling, general, and administrative expenses (SG&A) were $24.9 million, or 17.8% of sales, in the reported quarter, inclusive of $0.8 million in amortization of intangibles associated with the acquisition of SC Co. on July 31, 2017. Trex’s income from operations was $30.37 million for Q3 2017 compared to $10.57 million in Q3 2016.

Trex reported a net income of $20.1 million, or $0.68 per diluted share, for Q3 2017, which was ahead of the net income of $7.8 million, or $0.26 per diluted share, reported in Q3 2016. The Company’s net earnings improved by 34% during the reported quarter, after adjusting for the effects of the warranty reserve of the year-ago corresponding period. Trex’s earnings figures exceeded Wall Street’s expectations of $0.54 per share.

Segment Results

During Q3 2017, Trex’s Residential Product segment’s sales jumped 23% to $131 million, while its gross margin expanded to 40.6%. Trex Commercial Product segment’s sales contributed $9 million for August and September 2017.

Cash Matters

As of September 30, 2017, Trex’s cash and cash equivalents totaled $25.54 million compared to $18.66 million as of December 31, 2016. The Company generated $92.84 million in operating cash flow in the reported quarter, which allowed Trex to fund the $71.5 million purchase in cash of SC Co. during Q3 2017.

Outlook

Trex is forecasting total revenues to be approximately $118 million in the fourth quarter of 2017, comprised of a 9% increase in Trex Residential Products segment’s revenue to $104 million, and a $14 million contribution from Trex Commercial Products segment. Based on the upcoming quarter’s revenue expectations, Trex is estimating full-year fiscal 2017 consolidated revenue growth to be 17% on a y-o-y basis, while Trex Residential Products segment’s revenue is expected to grow by 12%.

Stock Performance Snapshot

December 04, 2017 – At Monday’s closing bell, Trex’s stock declined 1.93%, ending the trading session at $110.99.

Volume traded for the day: 271.74 thousand shares, which was above the 3-month average volume of 249.76 thousand shares.

Stock performance in the last month – up 3.38%; previous three-month period – up 46.44%; past twelve-month period – up 63.36%; and year-to-date – up 72.34%

After yesterday’s close, Trex’s market cap was at $3.24 billion.

Price to Earnings (P/E) ratio was at 36.05.

The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry. This sector was up 0.3% at the end of the session.

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