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Trex (NYSE:TREX) rose in extended trading Monday after the maker of deck materials reported first-quarter sales and profit that beat estimates. Its stock gained 2.1% to $57.50 a share.
Sales fell 30% from a year earlier to $238.7 million in Q1, beating the average estimate among Wall Street analysts of $237.7 million.
Net income fell 42% from the prior year to $41.1 million, or $0.38 a share, from $71.2 million, or $0.62 a share. The consensus estimate was $0.33 a share.
“First quarter results were broadly consistent with our plan as channel inventory levels and market demand aligned with our expectations,” Bryan Fairbanks, president and CEO of Trex, said in a statement.
Trex (TREX) is among the makers of building products whose sales rose as the pandemic kept many people at home, where they spent money to upgrade their living spaces. Sales declined 7.6% to $1.11 billion last year.
Looking ahead, Trex (TREX) estimated sales during Q2 in the range of $310 million to $320 million, and capital expenditures of $130 million to $140 million on a factory in Arkansas.
Seeking Alpha contributor Hindsight Investor has a Buy rating on Trex (TREX) for offering growth at a reasonable price. Columnist WideAlpha rates Trex (TREX) as a Strong Buy on its valuation.
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