Trex Company reports Q3 adjusted EPS 37c, consensus 32c

Reports Q3 revenue $233.717M, consensus $225.39M. “Our third quarter results were ahead of our expectations led by sustained consumer demand for our premium-priced products, for which we estimate sell-through increased by high-single digits year-on-year and contractor lead time continued to average 6 to 8 weeks. As anticipated, sell-through of our lower-priced products was below last year’s levels, consistent with a pullback in spending by consumers in this segment, although the decline was sequentially stable and less pronounced than we had expected. During the third quarter, our channel partners reduced their inventory levels by approximately $70 million, in line with our expectations and seasonal demand trends. Our strong EBITDA margin in the third quarter reflected the benefits of our continuous cost-out programs, which partially offset the impact of lower utilization rates, as well as lower SG&A expenses,” said Bryan Fairbanks, President and CEO.