Trex Company, Inc. (NYSE:TREX) released its quarterly earnings report on October 10, 2023, revealing earnings per share (EPS) of $0.51. This figure fell short of analysts’ expectations, which had projected an EPS of $0.57. According to Zacks Investment Research, the company’s performance reflected a return on equity of 21.27% and a net margin of 16.53%.
The company also updated its guidance for the fiscal year 2025, although specific EPS forecasts were not disclosed. Following the announcement, Trex’s stock traded down by $0.90 to $47.04 during midday trading. The volume of shares traded reached 3,272,964, significantly higher than its average volume of 1,641,404 shares. Trex’s current market capitalization stands at $5.04 billion, with a price-to-earnings (P/E) ratio of 27.19 and a beta of 1.49. Over the past year, the stock has fluctuated between a low of $46.31 and a high of $80.74.
Insider Activity and Analyst Ratings
In related news, senior vice president Amy M. Fernandez sold 1,538 shares of Trex on October 6, 2023, at an average price of $64.18, totaling approximately $98,709. Following this transaction, Fernandez holds 22,953 shares valued at around $1,473,123.54, marking a 6.28% decrease in her holdings. Currently, insiders own 0.71% of Trex’s stock.
Analysts have been adjusting their price targets for Trex following the earnings report. The Goldman Sachs Group reduced its price objective from $83.00 to $73.00, maintaining a “buy” rating. Meanwhile, Wall Street Zen upgraded its rating from “sell” to “hold.” Zelman & Associates also lowered its price target from $74.00 to $66.00 with an “outperform” rating. B. Riley upgraded Trex to a “strong buy” rating, while DA Davidson set a neutral rating with a target of $60.00. Overall, MarketBeat reports a consensus average rating of “Moderate Buy” with a price target of $70.71.
Company Overview
Trex Company, Inc. specializes in manufacturing and distributing composite decking, railing, and outdoor living products for both residential and commercial markets in the United States. Its product lines include Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance, designed to resist fading, staining, mold, and scratching. The company also offers the Trex Hideaway hidden fastening system and Trex DeckLighting, an LED dimmable lighting solution for decks.
The latest earnings report and subsequent stock performance underscore the challenges Trex faces in a competitive market. Investors and analysts will be closely monitoring the company’s strategic adjustments as it navigates its fiscal outlook for 2025.
