Shares of Trex, the Winchester-based building-products company, experienced a significant surge following the release of their better-than-expected third-quarter results. The stock saw a 9.4% increase in after-hours trading, reaching a price of $60.50, building on a 1.9% rise at Monday's close. Year-to-date, shares have already risen by an impressive 31%.
Impressive Financial Performance
Trex reported a third-quarter profit of $65.3 million, translating to 60 cents per share. This marks a substantial improvement compared to the $14.4 million, or 13 cents per share, reported during the same period last year. Analysts surveyed by FactSet had expected per-share profits of 60 cents, matching the company's actual performance.
Moreover, Trex's revenue experienced a substantial surge of 62%, reaching $303.8 million for the quarter. This surpassed the forecasted $290.1 million predicted by analysts surveyed by FactSet.
Strong Demand and Improved Margins
The impressive results were fueled by sustained and robust demand for Trex's products. The company's Chief Executive, Bryan Fairbanks, noted that they continued to witness strong demand across their product line. This high demand, coupled with increased sales volume and improved efficiencies, resulted in boosted margins during the third quarter.
Optimistic Forecast for Q4
Looking ahead, Trex expects their revenue to range between $185 million and $195 million for the fourth quarter. This outlook is slightly higher than the $188.4 million forecasted by analysts surveyed by FactSet.
It is clear that Trex's strong performance and optimistic outlook have contributed to the recent surge in their stock price. Investors are confident in the company's ability to leverage its solid market position and capitalize on the continued demand for its products.