The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Trex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share grew.
Margins shrank across the board.
Trex reported revenue of $70.8 million. The six analysts polled by S&P Capital IQ expected net sales of $70.7 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $67.9 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 $0.36. The six earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS were -$0.86 for Q3 against -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 3.0%, 2,240 basis points worse than the prior-year quarter. Operating margin was -19.3%, 2,560 basis points worse than the prior-year quarter. Net margin was -20.2%, 1,950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $57.8 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $318.5 million. The average EPS estimate is $1.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 99 members out of 149 rating the stock outperform, and 50 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Trex a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Trex is outperform, with an average price target of $36.00.
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