It's been a rough year for companies behind big-ticket home projects, but relief may be on the way.
Shares of Trex
It also wasn't Trex's guidance for the current quarter that resulted in a welcome wave of investor buying. Trex is targeting just $50 million to $55 million in net sales during the final three months of the year, well short of the more than $70 million that the pros were forecasting. Trex feels that Wall Street wasn't being realistic here. At this time a year ago, Trex was announcing that prices would go up for its Transcend line come 2011, fueling unseasonably strong sales by forward-thinking shoppers trying to get in ahead of the hike.
If the past isn't as good as Wall Street was expecting and the present is even worse, why would Trex shares move higher yesterday? Well, the decking leader's initial guidance for 2012 is pretty darn encouraging. Feedback from its annual distributor meeting finds Trex anticipating net sales climbing by at least 25% during the first quarter, growing "significantly" for all of 2012.
This is welcome news for Lumber Liquidators
If Trex's distributors are genuinely pumped up about 2012, this will also naturally be good news for Home Depot
After years of pent up demand -- seeing any gains going to small-ticket home furnishing specialists Pier 1