Trex (TREX) Q3 Earnings Report Preview: What To Look For

TREX Cover Image

Composite decking and railing products manufacturer Trex Company (NYSE:TREX) will be reporting results tomorrow after market close. Here’s what you need to know.

Trex missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $376.5 million, up 5.6% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ organic revenue 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 decline 25.8% year on year to $225.4 million, a reversal from the 61.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.

Trex Total Revenue

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 missed Wall Street’s revenue estimates twice over the last two years.

Looking at Trex’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Lennox reported revenues up 9.6%, topping estimates by 5.9%. Simpson traded down 5.5% following the results while Lennox was up 4.3%.

Read our full analysis of Simpson’s results here and Lennox’s results here.

Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Trex is down 3.4% during the same time and is heading into earnings with an average analyst price target of $77.56 (compared to the current share price of $64.31).

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