The 10-second takeaway
For the quarter ended March 31 (Q1), Trex beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share expanded significantly.
Margins increased across the board.
Trex logged revenue of $96.1 million. The six analysts polled by S&P Capital IQ hoped for revenue of $90.5 million on the same basis. GAAP-reported sales were 39% higher than the prior-year quarter's $69 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The six earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.74 for Q1 were 147% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.9%, 350 basis points better than the prior-year quarter. Operating margin was 17.5%, 830 basis points better than the prior-year quarter. Net margin was 12.8%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $93.1 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $318.7 million. The average EPS estimate is $1.56.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 81 members rating the stock outperform and 51 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Trex a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Trex is buy, with an average price target of $33.83.
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