Trex Company Soars to 52-Week High on Earnings Beat, Announced Stock Split

Joel Anderson |

Shares in industrial goods Small-Cap Star Trex Company (TREX) skyrocketed on Monday after the company reported Q4 earnings that had the maker of wood/plastic composite products swinging to profit. The stock shot up over 25 percent on very heavy volume, with shares hovering just under $85 apiece and hitting a 52-week high.

Trex reported earnings of $0.23 per share, swinging to a positive after losing $0.91 a share in the previous quarter. It was a major beat, with analyst expectations coming it at just $0.06 a share. Driving the gains was a 38 percent year-over-year increase in net sales to $63.8 million from $46.2 million in Q4 of 2012.



"We brought 2013 to a very strong finish," said Chairman, President and CEO Ronald W. Kaplan. "Expanded distribution and dealer demand across the country contributed significantly to sales and are helping us advance a key initiative - increasing market share. Our best-in-class high-performance product platform, coupled with our recently revised pricing strategy, is being well received in the marketplace. Our robust sales increase fell to the bottom line, producing an impressive $6.0 million improvement over underlying net income in the 2012 quarter.”

The strong earnings report also made waves with the announcement that the Board of Directors had approved a 2-for-1 stock split with the additional shares being distributed in the form of a stock dividend on May 7 to all shareholders of record as of market close on April 7.

Trex currently finds itself in a strong uptrend, with the company’s stock chart showing sharply rising resistance and support levels. The stock had been hovering around the support level in this channel prior to today’s earnings report and subsequent spike.

On the whole, Trex is up over 85 percent over the last year, making it one of the better performers in the Small-Cap Stars. And a closer look at the company’s Equities.com EVA Report shows growth over time, with significant improvement from 2011 to 2012 in revenue, gross profit, and net margin.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
TREX Trex Company Inc. 69.79 1.21 1.76 204,032
MRTPY Marston\'s Plc ADR 17.06 0.00 0.00 0

Comments

Emerging Growth

MGX Minerals Inc.

MGX Minerals is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in western Canada that…

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…