Shares of Trex Co. saw a late increase on Monday as the company predicted escalating demand and double-digit sales growth for the year 2024.
Stock Performance
The stock experienced a significant 7.6% boost, reaching $102.07 during after-hours trading, following a 1.1% uptrend at the close of Monday. Over the past three months, shares have surged by approximately 38%.
Sales Projections
The Winchester, Va.-based manufacturer of decking and railing products projected sales figures for 2024 ranging between $1.215 billion to $1.235 billion, signaling a 12% growth rate at the midpoint of the guidance scope. Analysts surveyed by FactSet anticipate sales of $1.218 billion.
Growth Expectations
Trex foresees mid-single-digit demand expansion in 2024 and anticipates reaping benefits from transitioning its “early buy” initiative to the first quarter of 2024 from the previous fourth quarter of 2023.
Financial Results
Consolidated net sales for Trex remained relatively steady in the fourth quarter at $195.7 million, surpassing analysts’ forecast of $193.4 million.
The company announced a profit of $22 million, or 20 cents per share, in the quarter compared to $10.1 million, or 9 cents per share, from the previous year. FactSet’s surveyed analysts had expected a per-share profit of 19 cents.
CEO Insights
Chief Executive Bryan Fairbanks highlighted robust demand for Trex’s products heading into 2024, alongside mid-single-digit channel sell-through. Fairbanks also pointed out that the company’s inventories concluded the year at historically low levels.
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