Composite decking and railing products manufacturer Trex Company (NYSE:TREX) will be reporting earnings this Thursday after market hours. Here’s what you need to know.

Trex beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $167.6 million, down 14.4% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.

Is Trex a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Trex’s revenue to decline 12.1% year on year to $328.4 million, a reversal from the 56.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.Trex Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Trex has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.1% on average.

Looking at Trex’s peers in the home construction materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Simpson delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 2%, and Hayward reported revenues up 7.7%, topping estimates by 7.1%. Simpson’s stock price was unchanged after the resultswhile Hayward was up 5.3%.

Read our full analysis of Simpson’s results here and Hayward’s results here.

There has been positive sentiment among investors in the home construction materials segment, with share prices up 10.9% on average over the last month. Trex is up 11.6% during the same time and is heading into earnings with an average analyst price target of $69.23 (compared to the current share price of $61.09).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

View Comments