Trex Shares Surge 6% After Q3 Results Beat Expectations and Annual Guidance Reaffirmed

WINCHESTER, Va. - Trex Company, Inc. (NYSE:TREX), a manufacturer of wood-alternative decking, saw its shares rise by 6.68% after the company reported third-quarter results that exceeded analyst expectations and confirmed its annual guidance.

The company reported earnings per share of $0.37, surpassing the consensus estimate of $0.32. Revenue also exceeded Wall Street's prediction of $225.42 million, coming in at $234 million. Although sales showed a 23% decline year-over-year, they were above the company's own expectations.

Trex attributed its better-than-expected performance to sustained consumer demand for its premium-priced products. The company anticipates that sales of these products have increased by a high single-digit percentage compared to last year.

Trex's President and CEO, Bryan Fairbanks, stated, "Our third-quarter results exceeded expectations, thanks to sustained consumer demand for our premium-priced products."

Looking ahead, Trex confirmed its revenue guidance of $1.14 billion for the year 2024. The company also indicated that it expects to reach the upper end of its guidance range for an EBITDA margin of 30.5%.

Management expressed confidence in Trex's long-term outlook, noting that the company has repurchased $100 million in shares during the third and early fourth quarters. Trex sees significant growth opportunities as it expands its presence in the $3.3 billion railing market.