NYSE$TREX

Trex Co Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Trex reported strong double-digit sales growth and gross margin expansion in Q4 2019.

Trex Company reported an 18% increase in consolidated net sales for Q4 2019, reaching $165 million. Earnings per share increased by 42% to $0.61. The company anticipates strong double-digit sales growth for 2020.

  • Consolidated net sales increased by 18% to $165 million.
  • Trex Residential net sales were up 25%.
  • Consolidated gross margin increased by 40 basis points to 43.2%.
  • Earnings per share increased by 42% to $0.61.

Headline financials

Total Revenue

$165M

Previous: $140M+17.7%
EPS (adj)

$0.31

Previous: $0.22+40.9%
Gross Margin

43.2%

Previous: 42.8%+0.9%
SG&A Expense

$15.20

No prior period
Capital Expenditures

$30.3M

Previous: $12.2M+148.6%
Free Cash Flow

$27M

Previous: $10.5M+156.3%
Net Income

$35.5M

Previous: $25.2M+41.0%
Operating Income

$46.2M

Previous: $32.2M+43.5%
Gross Profit

$71.3M

Previous: $59.9M+19.1%
Cash & Equivalents

$149M

Previous: $106M+40.8%
Total Assets

$592M

Previous: $465M+27.3%
Stock-Based Comp

$1.09M

Previous: $1.3M-16.4%

Revenue & EPS history

Trex · Revenue · Quarterly

$165M

Q4 2019+17.7%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Trex Company anticipates strong double-digit sales growth for 2020, closely tied to the ramp-up of additional capacity. For the first quarter of 2020, the company expects consolidated net sales of approximately $200 million, 11% ahead of the first quarter 2019.

Tailwinds

  • Strong economic environment
  • Healthy repair and remodel sentiment
  • High consumer confidence
  • Robust demand for Trex Residential Products
  • Executing on multi-year capital expenditures program

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 Q4 2019

Historical avgQ4 2019

+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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