NYSE$TREX

Trex Co Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Trex reported strong results driven by robust repair and remodel activity and strong demand.

Trex Company reported a 45% increase in consolidated net sales, reaching $336 million. Net income grew by 73% to $74 million, with diluted earnings per share of $0.64. EBITDA increased by 76% to $108 million, with an EBITDA margin of 32.2%. The company also announced plans for a third production site to address long-term demand trends.

  • Consolidated net sales increased 45% to $336 million.
  • Net income grew 73% to $74 million; diluted earnings per share of $0.64, up 73%.
  • EBITDA grew 76% to $108 million; EBITDA margin of 32.2%.
  • Announced plans for third production site to address long-term demand trends and pursue new growth opportunities.

Headline financials

Total Revenue

$336M

Previous: $232M+45.1%
EPS (adj)

$0.64

Previous: $0.41+56.1%
Gross Margin

38.2%

Previous: 36.7%+4.1%
SG&A Expense

$9.00

Previous: $12.10-25.6%
Capital Expenditures

-$124M

Previous: -$99.7M-24.8%
Free Cash Flow

-$50.7M

Previous: -$57M+11.1%
Net Income

$73.8M

Previous: $42.7M+72.8%
Operating Income

$98.1M

Previous: $56.9M+72.3%
Gross Profit

$128M

Previous: $85M+50.9%
Cash & Equivalents

$54M

Previous: $20.1M+169.1%
Total Assets

$953M

Previous: $718M+32.7%
Stock-Based Comp

$1.89M

Previous: $1.62M+16.8%

Revenue & EPS history

Trex · Revenue · Quarterly

$336M

Q3 2021+45.1%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

For the fourth quarter of 2021, Trex expects consolidated net sales to range from $295 million to $305 million, representing 31% year-over-year growth at the midpoint of the range. Anticipating sustained consumer demand along with infilling of low channel inventories, as we look to 2022, we expect another year of strong double-digit revenue gains.

Tailwinds

  • Demand trends remain strong.
  • Mirroring repair and remodel spending forecasts for the remainder of 2021 and into 2022.
  • Significant rise in home improvement permits indicating that homeowners are continuing to invest in their primary and secondary residences.
  • Order activity together with website traffic and analytics point to a strong finish to 2021.
  • Anticipating sustained consumer demand along with infilling of low channel inventories, as we look to 2022, we expect another year of strong double-digit revenue gains.

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 Q3 2021

Historical avgQ3 2021

+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

Earnings price reactions
QuarterReport dateReaction (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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