Trex Company Stock Slips 12% On Quarterly Results

Shares of Trex Company, Inc. (TREX) are slipping over 12% on Tuesday morning after the company reported its second-quarter results.

TREX is currently trading at $55.97, down $7.86 or 12.31%, on the NYSE. The stock opened its trading at $65.41 after closing Monday's trading at $63.83. The stock has traded between $49.31 and $140.98 in the past 52 week period.

The company reported second-quarter profit of $89 million or $0.79 per share, up from $61 million or $0.53 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.67 per share for the quarter.

Second-quarter sales increased 24% year-over-year to $386 million reflecting a 25% increase in Trex Residential net sales to $374 million.

Looking forward, the company revised is capital expenditure spending for 2022 to $170 million to $180 million down from previous range of $200 million to $220 million.

"We anticipate the inventory adjustments being made in our channel will primarily impact this year's third and fourth quarter revenues, which we expect to range from $185 million to $195 million, and $180 million to $190 million, respectively. We expect EBITDA margin of 27% to 29% for full year 2022," said CEO Bryan Fairbanks.

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