Trex Swings To Q3 Profit - Update

(RTTNews) - Decking and railings maker Trex Company Inc (TREX), Monday reported a swing to profit in the third quarter, driven mainly by higher revenues and as well due to the absence of one-time charges recorded last year.

The company recorded a net profit of $8.9 million or $0.28 per share, compared with a loss of $15.3 million or $0.45 per share last year.

Last year, the company recorded charges of $22.9 million, including a $20 million rise in warranty reserve expenses for decking material made in Nevada before 2007.

On average, seven analysts polled by Thomson-Reuters estimated earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.

Trex, which makes railing and decking of wood and plastic materials, said net sales surged 32.2 percent to $95.5 million from $72.2 million last year. Analysts had a consensus revenue estimate of $92.29 million for the quarter.

Looking forward to the fourth quarter, the company expects sales to grow 10 percent to about $70 million. Analysts currently expect fourth-quarter sales of $69.47 million. The company expects full-year sales of $388 million, compared to analysts' current estimate of $383.41 million.

The company also authorized a common stock repurchase program of up to two million common stock.

TREX is currently trading at $37.99, up $1.21 or 3.29%, on the Nasdaq.