Trex sinks on weak second-half revenue forecast

Trex

09/08/2022 13:42

** Shares of Trex Company Inc  TREX.N  down 10.4% at $57.2
in premarket trading; multiple brokerages cut PT 
    ** The company, which makes wood-alternative decking and
railing products, sees significant reduction in revenues in the
second half, as consumer demand is filled by existing channel
inventories  urn:newsml:reuters.com:*:nBw8YzgZDa
    ** In late June, "we experienced a sudden reduction in
pro-channel demand, as our partners began to adjust their
inventory levels to align with expectations for an economic
slowdown" says CEO Bryan Fairbanks
    ** TREX Q2 revenue up 24% at $386.25 mln vs analysts'
estimates of $380.63 mln  urn:newsml:reuters.com:*:nL8N2ZK6PT
    ** Seven of 18 brokerages rate the stock "buy" or higher, 9
"hold" and 2 "sell" or lower; their median PT is $65
    ** Up to Monday's close, stock had fallen 52.73%, compared
with a 35.45% decline in the S&P 500 Building Products sub index
 .SPLRCBULD  YTD

 (Reporting by Reshma Rockie George)
 ((Reshma.George@thomsonreuters.com))