Why Trex Stock Jumped 14% in July
Shares of Trex (NYSE: TREX) climbed 14% last month, according to data from S&P Global Market Intelligence, after the manufacturer of wood-alternative decking products said that its growth would accelerate in the coming quarters.
In its second-quarter report, Trex reported sales that were essentially flat year-over-year at $206 million. It also delivered non-GAAP (adjusted) earnings per share of $0.64, which matched Wall Street's estimates.
While it was a decent performance, what really caught investors' attention was the company's guidance; management expects Trex's revenue to jump 25% year over year to approximately $207.5 million in the third quarter. After enduring relatively weak growth in previous quarters, investors cheered the news that Trex's expansion was reaccelerating.
Source Fool.com
