The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Trex beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share shrank. GAAP loss per share shrank.
Margins grew across the board.
Trex booked revenue of $46.2 million. The six analysts polled by S&P Capital IQ hoped for a top line of $45.2 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $51.5 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 -$0.13. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.17 per share. Non-GAAP EPS were -$0.13 for Q4 compared to -$0.54 per share for the prior-year quarter. GAAP EPS were -$0.22 for Q4 against -$1.19 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 29.1%, 3,110 basis points better than the prior-year quarter. Operating margin was -6.9%, 2,160 basis points better than the prior-year quarter. Net margin was -7.8%, 2,770 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $104.1 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $342.2 million. The average EPS estimate is $2.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 122 members out of 175 rating the stock outperform, and 53 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 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 $42.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Trex. The Motley Fool owns shares of Trex. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.