- Shares of decking company Trex surge after the firm reports quarterly earnings that beat expectations.
- The company says net sales for the third quarter hit a record $140 million, up more than 32 percent from last year.
TREX decking.Source: TREX
Shares of decking company Trex jumped 25 percent Tuesday after the firm reported quarterly earnings that beat expectations.
The stock hit a record of $109.09.
The company reported earnings per share of 68 cents compared with analyst expectations of 55 cents projected by FactSet.
Net sales for the third quarter hit a record $140 million, up more than 32 percent from the same quarter last year.
"It is clear that we are beginning to see the results of our influence with the consumer," CEO James E. Cline said on a conference call.
Cline credited a national ad campaign launched two years ago for driving demand.
The company said it expected revenue of $118 million in the fourth quarter.
Trex says it accounts for more than 80 percent of all residential decking and railing in North America. That market share has grown 4 percent since 2014, Cline said.
Analysts at FBR & Co. raised their price target for the company to $96 from $80 Tuesday while maintaining a hold rating.
Shares of the company have risen more than 60 percent this year.
