TREX - Trex gains after Q1 sales profit beat estimates

2023-05-08 19:07:03 ET

Trex ( NYSE: TREX ) rose in extended trading Monday after the maker of deck materials reported first-quarter sales and profit that beat estimates. Its stock gained 2.1% to $57.50 a share.

Sales fell 30% from a year earlier to $238.7 million in Q1, beating the average estimate among Wall Street analysts of $237.7 million.

Net income fell 42% from the prior year to $41.1 million, or $0.38 a share, from $71.2 million, or $0.62 a share. The consensus estimate was $0.33 a share.

“First quarter results were broadly consistent with our plan as channel inventory levels and market demand aligned with our expectations,” Bryan Fairbanks, president and CEO of Trex, said in a statement.

Trex ( TREX ) is among the makers of building products whose sales rose as the pandemic kept many people at home, where they spent money to upgrade their living spaces. Sales declined 7.6% to $1.11 billion last year.

Looking ahead, Trex ( TREX ) estimated sales during Q2 in the range of $310 million to $320 million, and capital expenditures of $130 million to $140 million on a factory in Arkansas.

Seeking Alpha contributor Hindsight Investor has a Buy rating on Trex ( TREX ) for offering growth at a reasonable price . Columnist WideAlpha rates Trex ( TREX ) as a Strong Buy on its valuation .

More about Trex

• Azek, Trex upgraded at BofA on leaner inventories of deck materials
• Makers of construction materials decline amid concerns about interest rates

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