Trex Beats on Both Top and Bottom Lines

Trex (NYSE: TREX  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Trex beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share shrank. GAAP loss per share shrank.

Margins grew across the board.

Revenue details
Trex booked revenue of $46.2 million. The six analysts polled by S&P Capital IQ hoped for a top line of $45.2 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $51.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.13. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.17 per share. Non-GAAP EPS were -$0.13 for Q4 compared to -$0.54 per share for the prior-year quarter. GAAP EPS were -$0.22 for Q4 against -$1.19 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.1%, 3,110 basis points better than the prior-year quarter. Operating margin was -6.9%, 2,160 basis points better than the prior-year quarter. Net margin was -7.8%, 2,770 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $104.1 million. On the bottom line, the average EPS estimate is $0.99.

Next year's average estimate for revenue is $342.2 million. The average EPS estimate is $2.39.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 122 members out of 175 rating the stock outperform, and 53 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Trex a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Trex is outperform, with an average price target of $42.67.

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