Stock Story -
Composite decking and railing products manufacturer Trex Company (NYSE:TREX) will be reporting earnings tomorrow after the bell. Here's what to look for.
Trex beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $373.6 million, up 56.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' earnings estimates.
Is Trex a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Trex's revenue to grow 8.8% year on year to $387.9 million, a reversal from the 7.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Trex has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.9% on average.
Looking at Trex's peers in the home construction materials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Masco's revenues decreased 1.7% year on year, meeting analysts' expectations, and Hayward reported flat revenue, in line with consensus estimates. Masco traded up 9.7% following the results while Hayward was also up 9.7%.
Read the full analysis of Masco's and Hayward's results on StockStory.
There has been positive sentiment among investors in the home construction materials segment, with share prices up 2.8% on average over the last month. Trex is up 8.9% during the same time and is heading into earnings with an average analyst price target of $96.4 (compared to the current share price of $77.25).
