The 10-second takeaway
For the quarter ended March 31 (Q1), Trex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.
Margins expanded across the board.
Trex logged revenue of $107.9 million. The six analysts polled by S&P Capital IQ expected revenue of $107.2 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $96.1 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 $1.25. The six earnings estimates compiled by S&P Capital IQ predicted $1.12 per share. GAAP EPS of $1.25 for Q1 were 69% higher than the prior-year quarter's $0.74 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 38.8%, 190 basis points better than the prior-year quarter. Operating margin was 20.4%, 290 basis points better than the prior-year quarter. Net margin was 20.0%, 720 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $102.9 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $344.7 million. The average EPS estimate is $2.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 132 members out of 187 rating the stock outperform, and 55 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Trex a green thumbs-up, and 15 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 $50.67.
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