- Trex reported fourth-quarter net sales of $167.6 million, outperforming estimates of $160.3 million, despite being down 14% year-over-year.
- The company’s EBITDA stood at $28.9 million, a decrease of 30% year-over-year, yet exceeded the estimate of $19.4 million.
- EPS was recorded at 9.0 cents, down from 20 cents the previous year.
- The EBITDA margin was 17.2%, surpassing the expected 12.3%.
- Trex projects first-quarter 2025 revenues to be between $325 million and $330 million, with the second quarter expected to match last year’s levels.
- Strong year-on-year comparisons are anticipated in the second half of 2025.
- For the full year 2025, net sales are forecasted to range from $1.21 billion to $1.23 billion, representing a 6% growth at the midpoint.
- The company plans to include an innovative technology feature in future products under the “Performance-Engineered for Your Life Outdoors” campaign.
- Trex revised its inventory strategy in the second half of 2024 to manage quarterly volatility more effectively.
- The first quarter sales for this year will feature the Early Buy program but will not see significant channel inventory builds as in 2024.
- Investment analyst ratings include 6 buys, 11 holds, and 1 sell.
Trex Company on Smartkarma
On Smartkarma, Baptista Research delves deep into Trex Company Inc. with their analysis titled “Trex Company Inc.: An Analysis Of Its Recent Market Expansion & Future Outlook! – Major Drivers”. The report highlights Trex’s recent third-quarter 2024 earnings, revealing a 23% decline in net sales to $234 million, largely attributed to a $70 million reduction in channel inventory. Despite this setback, Trex Company Inc. remains optimistic as it experiences strong consumer demand for premium offerings such as the Trex Transcend Lineage and Signature decking and railing, although sales of lower-priced products are more subdued.
A look at Trex Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Trex Company shows a promising long-term outlook. The company scores moderately for its overall value, indicating potential for growth. While its dividend score is lower, the company excels in growth, resilience, and momentum factors. With a solid footing in manufacturing non-wood decking alternatives, including decking and railing products, outdoor lighting, and accessory hardware, Trex is well-positioned to capitalize on global market opportunities.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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