The Gory Details on Trex's Double Miss
Trex (NYS: TREX) reported earnings on Feb. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Trex missed estimates on both revenue and earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP loss per share expanded.
Margins dropped across the board.
Trex booked revenue of $51.5 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $53.4 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $75.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.54. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.40 per share on the same basis. GAAP EPS were -$1.18 for Q4 compared to -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -2.0%, 2,420 basis points worse than the prior-year quarter. Operating margin was -28.5%, 3,020 basis points worse than the prior-year quarter. Net margin was -35.5%, 3,240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $86.1 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $312.2 million. The average EPS estimate is $1.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 77 members rating the stock outperform and 51 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Trex a green thumbs-up, and 23 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 $25.57.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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