NYSE$TREX

Trex Co Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Trex's third quarter results were consistent with expectations, as the company focused on cost efficiency and repurchased 1.7 million shares.

Trex Company reported third quarter 2022 results with net sales of $188 million and net income of $15 million. The company focused on cost efficiency and repurchased 1.7 million shares. They reaffirmed fourth quarter revenue and EBITDA margin guidance.

  • Consolidated net sales were $188 million.
  • Net income was $15 million; diluted earnings per share of $0.14, excluding severance charges.
  • EBITDA was $32 million; EBITDA margin of 17.0%, excluding severance charges.
  • The company repurchased 1.7 million shares of its outstanding common stock.

Headline financials

Total Revenue

$188M

Previous: $336M-43.9%
EPS (adj)

$0.14

Previous: $0.64-78.1%
Gross Margin

24.5%

Previous: 38.2%-35.9%
SG&A Expense

$27M

Previous: $9.00+299999900.0%
Capital Expenditures

-$108M

Previous: -$124M+13.1%
Free Cash Flow

-$93.7M

Previous: -$50.7M-85.1%
Net Income

$14.4M

Previous: $73.8M-80.5%
Operating Income

$19.4M

Previous: $98.1M-80.3%
Gross Profit

$46.2M

Previous: $128M-64.0%
Cash & Equivalents

$5.89M

Previous: $54M-89.1%
Total Assets

$842M

Previous: $953M-11.7%
Stock-Based Comp

$249K

Previous: $1.89M-86.8%

Revenue & EPS history

Trex · Revenue · Quarterly

$188M

Q3 2022-43.9%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company reaffirmed its guidance for net sales of $180 million to $190 million and its expectation for full year EBITDA margin of 27% to 29% and fourth quarter EBITDA margin of 22% to 25%.

Tailwinds

  • Industry-leading brand
  • Market leading products
  • Manufacturing efficiency
  • Well positioned as the prime beneficiary of long-term trends towards outdoor living
  • Focus on wood conversion while operating in a sustainable and socially responsible manner

Headwinds

  • Extent of market acceptance of the Company’s current and newly developed products
  • Costs associated with the development and launch of new products and the market acceptance of such new products
  • Sensitivity of the Company’s business to general economic conditions
  • Impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products
  • Availability and cost of third-party transportation services for the Company’s products

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 2022

Historical avgQ3 2022

+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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