Trex Corp Q2 EPS Beats Expectations, Sees Q3 Revenues Up Double-Digits

After the close Monday, Trex Corporation TREX reported Q2 EPS of $0.79 versus consensus estimates of $0.71. Sales were $146 million versus estimates for $145.19 million. Trex Corp, which manufactures alternative-materials used for decks and railings, said gross margins improved to 41.9 percent from 38.4 percent in Q2 2015. 

Trex expects Q3 2016 revenues to be up 12 percent YoY.

President & CEO James Cline said "Similar to this year’s first quarter, we produced earnings growth that significantly outpaced revenue gains in the second quarter, thanks to a combination of lower input costs, manufacturing cost saving initiatives and increased capacity utilization..."

Shares of Trex Corp. closed Mnonday's regular session up $0.41 or 0.85 percent to $48.90.