Trex Co. raises 2007 revenue guidance
Shares of Trex Co., Inc. (NYSE: TWP) bolted this morning in pre-market trading after the nation’s largest manufacturer of composite decking, railing and fencing raised its revenue guidance for 2007.
The Winchester, Va.-based company said it now expects net sales to be in the range of $335 million to $345 million ($350 million to $360 million before taking into account its product replacement reserve). The revised guidance is up from the previously forecasted range of $315 million to $335 million.
Trex attributed its upwardly revised guidance to stronger-than-anticipated performance in the first two months of the company’s traditionally seasonally slow fourth quarter—particularly at a time when the homebuilding and remodeling markets continue to exhibit weakness.
The small cap pointed out that a key to its positive results is a favorable market response to quality improvement initiatives Trex implemented for the past 18 months and the company’s line-up of decking, railing and fencing products
Trex also noted that it is receiving a positive response to its 2008 products and programs, including Trex Escapes, an ultra low-maintenance deck board; Trex Trim, a new exterior trim product for house molding, fascia and soffits; and greatly expanded design options for Trex Artisan and Designer Railing.
Shares of Trex (TWP) jumped 11.28%, or $0.76, to $7.50 in pre-market trading. Shares of Trex have been trading in the range of $5.34 to $27.70 for the past 52 weeks.
