Trex Reports Record Q4 Earnings of $0. 23, Outperforming Expectations by $0. 01 in 2023.
February 28, 2023
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Trex ($NYSE:TREX) announced record earnings for the fourth quarter of 2023, outperforming analyst estimates. The company reported Non-GAAP earnings per share of $0.23, exceeding the estimated figure of $0.22 by $0.01. The impressive quarter was the result of strong sales across the board, with all of the company’s product categories posting double-digit revenue growth. The company’s performance was aided by its disciplined approach to cost management, including the restructuring of its manufacturing operations.
Trex’s strong Q4 performance is a testament to the success of its strategy, which has enabled it to overcome the challenging macroeconomic environment. The company is well-positioned for continued growth and remains committed to delivering value for its shareholders in the quarters ahead.
Share Price
On Monday following the announcement, TREX COMPANY stock opened at $50.5 and closed at $51.4, up 2.5% from the prior closing price of 50.2. This is beneficial news for shareholders as it reflects a steady upturn in the company’s stock price for the year. The strong Q4 results were driven primarily by strong demand for TREX COMPANY’s sustainability-focused products, which demonstrate a clear commitment to sustainable business practices amidst ongoing environmental concerns.
Record demand for low-maintenance composite decking and railing materials has boosted revenue for the company throughout the year and its position as an industry leader has been further solidified. With a solid portfolio of products and a commitment to sustainability, TREX COMPANY is well-positioned to continue delivering strong returns to its shareholders in the years ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trex Company. More…
| Total Revenues | Net Income | Net Margin |
| 1.22k | 199.58 | 19.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trex Company. More…
| Operations | Investing | Financing |
| 389.4 | -143.06 | -294.49 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trex Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 841.9 | 285.36 | 5.07 |
Key Ratios Snapshot
Some of the financial key ratios for Trex Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | 21.6% | 25.7% |
| FCF Margin | ROE | ROA |
| 20.2% | 32.7% | 23.3% |
Analysis
At GoodWhale, we have analyzed the fundamentals of TREX COMPANY and have determined that it is a low risk investment. Our analysis shows that from a financial and business standpoint, TREX COMPANY has a low risk ranking. This is because the analysis shows good sales, cash flow, and balance sheet strength. Furthermore, TREX COMPANY is in compliance with regulations and standards. Despite the low risk rating, GoodWhale has detected one risk warning in the balance sheet. To gain greater insight into this risk warning, we recommend that you register with us to gain access to more detailed information on the company. More…
Peers
The company’s products are made from recycled materials, such as plastic bags and wood fiber. Trex’s products are available in a variety of colors, textures, and designs. The company also offers a line of low-maintenance, high-performance products that are designed to withstand the elements. Trex’s competitors include Stelrad Group PLC, Komatsu Wall Industry Co Ltd, and PT Arwana Citramulia Tbk.
– Stelrad Group PLC ($LSE:SRAD)
The Stelrad Group PLC is a leading manufacturer of radiators and related products. The company has a market capitalization of 156.64 million as of 2022 and a return on equity of 24.55%. The company’s products are used in a variety of applications, including heating, ventilation, and air conditioning (HVAC), industrial, and commercial. The company’s products are sold through a network of distributors and dealers in the United Kingdom, Europe, North America, and Asia.
– Komatsu Wall Industry Co Ltd ($TSE:7949)
Komatsu Wall Industry Co Ltd has a market cap of 17.66B as of 2022. The company’s ROE is 3.05%. Komatsu Wall Industry Co Ltd is a Japanese company that manufactures and sells construction equipment. The company’s products include excavators, bulldozers, and cranes.
– PT Arwana Citramulia Tbk ($IDX:ARNA)
PT Arwana Citramulia Tbk is one of the largest publicly traded companies in Indonesia with a market capitalization of 6.18 trillion as of 2022. The company has a diversified business portfolio with interests in mining, manufacturing, real estate, and other sectors. The company’s return on equity is 29.56%, indicating that it is a profitable company. PT Arwana Citramulia Tbk is a well-established company with a strong presence in Indonesia and a good reputation among investors.
Summary
Trex Company recently reported record fourth quarter earnings of $0.23, exceeding analysts’ expectations of $0.22 by a penny. Trex’s impressive earnings are further evidence of its stable financial position, with increased revenue, improved operating efficiency, and a solid balance sheet. While the investing landscape is always changing, investors remain confident that Trex will continue to deliver on its financial goals and maintain its solid track record of success.
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