Trex tumbles on Q2 rev miss, downbeat FY rev forecast

Trex

07/08/2024 12:53

** Shares of Trex  TREX.N  down 17.2% premarket to $63.40, a
9-mth low, after decking and railing maker's qtrly report
disappoints
    ** Co known for its composite decking materials late Tues
posted Q2 sales of $376.5 mln, below LSEG estimate of $387.9 mln
    ** Adj EPS of 80 cents beat consensus view of 78 cents
    ** In the statement, CEO Bryan Fairbanks said co seeing
encouraging data related to mid-market and premium product sales
but lower-end segment sales seeing softness, which is expected
to continue for balance of 2024
    ** Co projects annual rev of $1.13-$1.15 bln, down from
prior guidance of $1.22-$1.24 bln
    ** At least 6 brokerages cut their PTs; Stephens downgrades
to "equal-weight" from "overweight", slashes PT to $72 from $115
    ** Avg rating among 19 brokerages covering TREX is "buy" and
their median PT is $84, down from $105 a month ago - LSEG
    ** Through Tues, TREX down 7.5% YTD. Stock ended 2022 at
$42.33

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))