Here's Why Trex Stock Got Hammered Today
Shares of composite decking company Trex (NYSE: TREX) got hammered on Tuesday after the company reported financial results for the second quarter of 2022. Q2 results were better than expected, but the company expects an alarming slowdown in the second half of the year. And that's why Trex stock was down 15% as of 1:15 p.m. ET.
In Q2, Trex grew revenue 24% year over year to $386 million. According to The Fly, this is about $6 million more than Wall Street expected. But perhaps more impressively, its gross profit margin increased to 40.7% compared to 38% in the same quarter last year, even though inflation threatened to do the opposite.
Trex's management was able to protect margins with timely price increases and operational efficiencies. As a result, Q2 net income increased 45% year over year to $89 million. And with the business performing well, management rewarded shareholders by repurchasing 2.8 million shares during the quarter.
Source Fool.com
