UPDATE: Trex Posts Q3 Profit, Announces 2M Share Buyback Plan

Shares of Trex Company TREX gained more than 4% in pre-market trading after the company reported a profit in the third quarter and announced a buyback plans for up to 2 million shares. The Winchester, Virginia-based company reported quarterly net income of $8.9 million, or $0.28 per share, versus a year-ago net loss of $15.3 million, or $0.45 per share. The latest quarter results reflect a $5.4 million rise in income taxes driven by the return to a normal tax rate after exiting its tax valuation allowance at year-end 2013. The tax rise impacted EPS by $0.17 versus the year-ago period. Its net sales surged 32.2% to $95.5 million from $72.2 million. However, analysts were expecting earnings of $0.24 per share on revenue of $92.29 million. Chairman, President and CEO Ronald W. Kaplan commented, “Our third-quarter and year-to-date financial performance set records for Trex in both sales and earnings per share. These outstanding results were fueled by our four guiding principles for enhancing shareholder value – our best-in-class outdoor living product platform, branding strength, distribution power and low-cost manufacturing advantage.” Trex expects Q4 sales of $70.0 million, versus analysts' estimates of $69.0 million. Trex shares gained 4.05% to $38.27 in pre-market trading.