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Trix (New York Stock Exchange: TREX) rose in extended trading on Monday after the deck materials maker reported first-quarter sales and earnings that beat estimates. Its stock gained 2.1% to $57.50 a share.
Sales fell 30% from a year earlier to $238.7 million in the first quarter, surpassing The average estimate by Wall Street analysts is $237.7 million.
Net income fell 42% from the prior year to $41.1 million, or $0.38 per share, from $71.2 million, or $0.62 per share. The consensus estimate was $0.33 a share.
“Our first-quarter results were generally consistent with our plan as channel inventory levels and market demand matched our expectations,” Trex President and CEO Brian Fairbanks said in a statement.
Trex (TREX) is among the makers of building products whose sales have soared as the pandemic has kept many people at home, spending money to improve their living quarters. Sales fell 7.6% to $1.11 billion last year.
Looking ahead, Trex (TREX) estimated sales during the second quarter in the range of $310 million to $320 million, and capital expenditures of $130 million to $140 million at a plant in Arkansas.
Seeking Alpha Shareholder Hindsight Investor has a Buy rating on Trex (TREX) for offering Growth at a Reasonable Price. The columnist for WideAlpha rates Trex (TREX) as a Strong Buy on his rating.
More about Trex
- BofA’s Azek, Trex have been upgraded on smaller inventories of deck materials
- Building materials makers fell amid concerns about interest rates