NYSE$TREX
Trex Co Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Trex experienced continued demand for residential decking and railing products, leveraging operating efficiencies through expanded gross margin and lower SG&A expenses.
Trex Company reported a 7% increase in consolidated net sales, reaching $221 million. The company's gross margin expanded to 41.9%, and earnings per diluted share increased by 33% to $0.81.
- Consolidated net sales increased 7% to $221 million.
- Consolidated gross margin of 41.9%, up 150 basis points.
- EBITDA margin of 30.6%, up 580 basis points.
- Consolidated earnings per diluted share of $0.81, up 33%.
Headline financials
Revenue & EPS history
Trex · Revenue · Quarterly
$221M
Forward guidance
For the third quarter of 2020, Trex expects consolidated net sales of approximately $215 million to $225 million, representing 13% year-over-year growth at the midpoint.
Tailwinds
- Trex expects full year 2020 incremental gross margin to be 45% to 50% inclusive of additional COVID-19 related expenses.
- Full year SG&A as a percentage of sales to improve by 80 to 100 basis points compared to the prior year.
- A full year tax rate of approximately 25%.
- Full year capital spending of $150 million to $170 million.
- Trex Board of Directors has approved a 2-for-1 stock split of the Company’s common shares.
Headwinds
- The extent of market acceptance of the Company’s current and newly developed products.
- The costs associated with the development and launch of new products and the market acceptance of such new products.
- The sensitivity of the Company’s business to general economic conditions.
- The impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products.
- Material adverse impacts from global public health pandemics, including the strain of coronavirus known as COVID-19.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
+1.1%
Avg return
Earnings day
+2.1%
Avg return
5 days after
+2.4%
Avg return
30 days after
51%
33 / 65 earnings
Positive
+26.8%
Q3 2013
Best reaction
-31.1%
Q3 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.9% | -2.2% | -0.7% | |
| Q4 2025 | +0.7% | -1.9% | -14.3% | |
| Q3 2025 | -31.1% | -31.5% | -26.7% | |
| Q1 2025 | -1.0% | +3.6% | -2.8% | |
| Q4 2024 | +1.2% | +5.1% | -5.8% | |
| Q3 2024 | +9.8% | +10.0% | +15.7% | |
| Q2 2024 | -20.4% | -19.5% | -19.4% | |
| Q1 2024 | -3.8% | -2.5% | -11.7% | |
| Q4 2023 | -0.7% | +0.9% | +5.8% | |
| Q3 2023 | +3.6% | +15.5% | +29.4% | |
| Q2 2023 | +9.7% | +4.8% | +2.9% | |
| Q1 2023 | +10.2% | +2.6% | +5.4% | |
| Q4 2022 | +2.0% | -4.1% | +5.9% | |
| Q3 2022 | -10.6% | -14.3% | -7.0% | |
| Q2 2022 | -16.0% | -8.7% | -27.2% | |
| Q1 2022 | +5.7% | +13.2% | +16.5% | |
| Q4 2021 | -8.0% | -17.4% | -22.0% | |
| Q3 2021 | +16.2% | +13.6% | +23.0% | |
| Q2 2021 | +0.3% | +8.4% | +14.4% | |
| Q1 2021 | -2.5% | -3.8% | -10.1% | |
| Q4 2020 | -11.2% | -10.7% | -14.7% | |
| Q3 2020 | +2.0% | +14.5% | +6.2% | |
| Q2 2020 | -0.3% | -0.2% | +9.3% | |
| Q1 2020 | +18.8% | +25.2% | +27.1% | |
| Q4 2019 | -2.4% | -10.0% | -23.4% | |
| Q3 2019 | -6.6% | -0.7% | -2.8% | |
| Q2 2019 | +14.3% | +12.5% | +18.4% | |
| Q1 2019 | -8.9% | -11.0% | -19.2% | |
| Q4 2018 | -1.2% | +0.7% | -9.7% | |
| Q3 2018 | -0.5% | +7.6% | +5.0% | |
| Q2 2018 | +20.2% | +21.4% | +30.1% | |
| Q1 2018 | +12.6% | +9.1% | +19.4% | |
| Q4 2017 | -4.9% | +0.2% | -3.1% | |
| Q3 2017 | +22.8% | +17.1% | +31.1% | |
| Q2 2017 | +3.4% | +6.5% | +3.1% | |
| Q1 2017 | -7.5% | -10.8% | -7.9% | |
| Q4 2016 | -5.7% | -5.0% | -0.4% | |
| Q3 2016 | +11.0% | +22.3% | +27.6% | |
| Q2 2016 | +17.4% | +22.2% | +27.7% | |
| Q1 2016 | -6.5% | — | — | |
| Q4 2015 | +16.9% | — | — | |
| Q3 2015 | -2.9% | — | — | |
| Q2 2015 | -10.6% | — | — | |
| Q1 2015 | +0.3% | — | — | |
| Q4 2014 | +4.1% | — | — | |
| Q3 2014 | +7.7% | — | — | |
| Q2 2014 | +18.5% | — | — | |
| Q1 2014 | -10.9% | — | — | |
| Q4 2013 | +10.8% | — | — | |
| Q3 2013 | +26.8% | — | — | |
| Q2 2013 | -11.7% | — | — | |
| Q1 2013 | +8.4% | — | — | |
| Q4 2012 | +7.6% | — | — | |
| Q3 2012 | +12.4% | — | — | |
| Q2 2012 | -5.9% | — | — | |
| Q1 2011 | -6.9% | — | — | |
| Q1 2012 | -0.5% | — | — | |
| Q4 2009 | +3.6% | — | — | |
| Q4 2011 | +3.6% | — | — | |
| Q3 2011 | +7.5% | — | — | |
| Q3 2010 | +7.5% | — | — | |
| Q2 2011 | -13.5% | — | — | |
| Q4 2010 | -13.5% | — | — | |
| Q2 2010 | -13.5% | — | — | |
| Q1 2010 | -2.5% | — | — |
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