Trex Co's Earnings: A Preview
Trex Co (NYSE:TREX) is gearing up to announce its quarterly earnings on Monday, 2025-08-04. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Trex Co will report an earnings per share (EPS) of $0.71.
Investors in Trex Co are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
During the last quarter, the company reported an EPS beat by $0.01, leading to a 0.93% drop in the share price on the subsequent day.
Here's a look at Trex Co's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.59 | 0.04 | 0.32 | 0.78 |
| EPS Actual | 0.60 | 0.09 | 0.37 | 0.80 |
| Price Change % | -1.0% | 1.0% | 6.0% | -22.0% |
Tracking Trex Co's Stock Performance
Shares of Trex Co were trading at $64.24 as of July 31. Over the last 52-week period, shares are down 16.49%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Views on Trex Co
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Trex Co.
The consensus rating for Trex Co is Neutral, based on 5 analyst ratings. With an average one-year price target of $71.6, there's a potential 11.46% upside.
Peer Ratings Comparison
In this comparison, we explore the analyst ratings and average 1-year price targets of AAON, Fortune Brands and Zurn Elkay Water Solns, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for AAON, with an average 1-year price target of $95.0, suggesting a potential 47.88% upside.
- Analysts currently favor an Outperform trajectory for Fortune Brands, with an average 1-year price target of $65.57, suggesting a potential 2.07% upside.
- Analysts currently favor an Buy trajectory for Zurn Elkay Water Solns, with an average 1-year price target of $46.5, suggesting a potential 27.62% downside.
Comprehensive Peer Analysis Summary
The peer analysis summary presents essential metrics for AAON, Fortune Brands and Zurn Elkay Water Solns, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Trex Co | Neutral | -9.00% | $137.73M | 6.87% |
| AAON | Buy | 22.87% | $86.36M | 3.57% |
| Fortune Brands | Outperform | -6.89% | $454.70M | 2.17% |
| Zurn Elkay Water Solns | Buy | 7.89% | $202.30M | 3.25% |
Key Takeaway:
Trex Co ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Trex Co is at the top.
Discovering Trex Co: A Closer Look
Trex Co Inc is a manufacturer of wooden alternative decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in one reportable segment i.e. Trex Residential.
Financial Milestones: Trex Co's Journey
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Trex Co's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -9.0% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Trex Co's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.78%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Trex Co's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 6.87%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.08%, the company showcases effective utilization of assets.
Debt Management: Trex Co's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.54.
To track all earnings releases for Trex Co visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
