By Sam Boughedda
Investing.com -- Trex Company (NYSE:TREX) stock jumped Tuesday after it reported better-than-expected first-quarter results after the close Monday, with sales benefitting from price increases.
First-quarter revenue came in at $339.23 million and beat analyst forecasts of $326.84 million. Furthermore, earnings per share also beat estimates, coming in 8 cents higher at $0.62 per share.
In addition, Trex said any price increases to combat inflationary pressures were "absorbed by the market" and helped benefit the company's net sales. The company added that it is capturing "more than its share of the ongoing conversion from wood to composite products."
"2022 is off to a strong start with Trex Residential posting 40% revenue growth, reflecting a double-digit increase in volume from strong secular trends, as homeowners continue to invest in existing residences and pursue renovations that enhance their outdoor living spaces," stated President and CEO, Bryan Fairbanks.
The composite decking, railing, and outdoor living products firm sees second-quarter net sales between $375 million and $385 million, representing a 22% year-over-year growth.
Meanwhile, Trex also expects double-digit revenue growth for the full year.
Trex shares initially reached highs of $64.26 following the announcement but are now up 2.6% at $57.12.