Earnings Update: Trex Company, Inc. (NYSE:TREX) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Trex Company, Inc. (NYSE:TREX) released its full-year result to the market. The early response was not positive, with shares down 7.2% to US$61.55 in the past week. The result was positive overall - although revenues of US$1.2b were in line with what the analysts predicted, Trex Company surprised by delivering a statutory profit of US$2.09 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Trex Company

Taking into account the latest results, the current consensus from Trex Company's 16 analysts is for revenues of US$1.22b in 2025. This would reflect a credible 6.2% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.7% to US$2.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.21b and earnings per share (EPS) of US$2.19 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$75.13, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Trex Company at US$90.00 per share, while the most bearish prices it at US$61.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Trex Company'shistorical trends, as the 6.2% annualised revenue growth to the end of 2025 is roughly in line with the 7.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.3% per year. It's clear that while Trex Company's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$75.13, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Trex Company going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Trex Company that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.