Check Yourself Before You Trex Yourself
Trex (NYSE: TREX) investors know a thing or two about flooring. And we're not just talking about its eco-friendly composite decking materials. Trex stock is closing in on the two-year lows it hit less than two weeks ago after the company posted disappointing financial results this week.
Monday afternoon's report wasn't as smooth as its signature outdoor flooring that holds up better to the elements than the wood planks it tries to resemble. Net sales plummeted 44% from the prior year's third quarter, a stunning reversal for a niche leader that had rattled off 10 consecutive years of 9% top-line growth or better. Is this the end of a decade of monster growth for Trex, or can it weather the storm like its product?
Let's take a closer look at the slide. It's not as surprising as you think when you consider the business and its market.
Source Fool.com
