Trex Co. Shares Plummet as Housing Slowdown Hits Decking Materials Demand
Trex Co. (TREX) shares tumbled nearly 30% to multiyear lows after the decking materials manufacturer reported disappointing quarterly results and cut its outlook. The company cited persistent weakness in repair and remodeling spending amid higher interest rates and constrained household budgets.
Third-quarter adjusted earnings of $0.51 per share missed estimates by $0.06, while revenue of $285.3 million fell short despite 22% year-over-year growth. CEO Bryan Fairbanks noted improving trends early in the season gave way to the same challenging conditions that have plagued the industry for two years.
The housing materials sector continues facing headwinds as consumers defer large renovation projects. Trex now anticipates fourth-quarter sales between $140-$150 million, below previous guidance, with full-year revenue projected around $1.15 billion.
