NYSE$TREX

Trex Co Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Trex reported strong Q4 2020 results with residential product sales growth.

Trex Company reported a 39% increase in consolidated net sales, reaching $228 million in Q4 2020. Trex Residential Products net sales increased 40% to $214 million. The diluted earnings per share was $0.37, and the EBITDA margin was 27.9%.

  • Consolidated net sales increased 39% to $228 million.
  • Trex Residential Products net sales increased 40% to $214 million.
  • Diluted earnings per share of $0.37.
  • EBITDA margin of 27.9%.

Headline financials

Total Revenue

$228M

Previous: $165M+38.5%
EPS (adj)

$0.37

Previous: $0.31+19.4%
Gross Margin

40.5%

Previous: 43.2%-6.3%
Capital Expenditures

$73.1M

Previous: $30.3M+141.0%
Free Cash Flow

$102M

Previous: $27M+276.1%
Net Income

$43M

Previous: $35.5M+21.1%
Operating Income

$58.2M

Previous: $46.2M+25.8%
Gross Profit

$92.4M

Previous: $71.3M+29.6%
Cash & Equivalents

$122M

Previous: $149M-18.2%
Total Assets

$770M

Previous: $592M+30.1%
Stock-Based Comp

$1.21M

Previous: $1.09M+11.6%

Revenue & EPS history

Trex · Revenue · Quarterly

$228M

Q4 2020+38.5%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Trex anticipates another year of strong double-digit sales growth in 2021 and expects first quarter consolidated net sales to range from $235 million to $245 million, representing year-on-year growth of 20% at the midpoint.

Tailwinds

  • Another year of strong double-digit sales growth is expected in 2021.
  • First quarter consolidated net sales to range from $235 million to $245 million, representing year-on-year growth of 20% at the midpoint.
  • Growth to expand in the second and third quarters as capacity increases and as we backfill inventory in the channel.
  • Incremental EBITDA margin to be between 35% to 40%.
  • Demand for Trex Residential products continues to benefit from positive secular trends.

Headwinds

  • Startup related expenses will continue as we ramp up production at our Virginia facility.
  • Higher inflation.
  • More normalized selling, general and administrative expenses partially offset by cost savings projects.
  • Tax rate is anticipated at approximately 25%.
  • Depreciation will range from $35 million to $40 million increasing throughout the year.

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 2020

Historical avgQ4 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

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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro