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Investing.com - Trex Company (NYSE:TREX), the $5.9 billion market cap composite decking manufacturer, announced the departure of its Chief Financial Officer, who will remain with the company for over a month and likely through the upcoming earnings announcement on August 11.
The composite decking manufacturer simultaneously reaffirmed its revenue guidance for the second quarter of 2025 and maintained both revenue and margin guidance for the full year, providing stability amid the leadership change. According to InvestingPro data, the company maintains a healthy 40.6% gross profit margin and operates with a moderate debt level.
Trex’s current guidance projects mid-single-digit revenue growth and increased EBITDA for 2025, notable performance metrics considering the broader consumer durables market continues to contract.
Truist Securities maintained its Buy rating on Trex stock with a $75.00 price target following the announcement.
The firm characterized Trex as "a particularly compelling stock" in its research note, citing the company’s ability to deliver growth despite challenging market conditions as a key factor supporting the continued positive outlook.
In other recent news, Trex Company Inc. reported its first-quarter 2025 earnings, revealing a revenue of $340 million, which exceeded forecasts by approximately $10.88 million, despite a 9% year-over-year decline in net sales. The earnings per share (EPS) met expectations at $0.60. The company reaffirmed its full-year guidance, projecting sales growth of 5%-7% and adjusted EBITDA margins exceeding 31%. Additionally, Trex confirmed it remains on track to achieve its second-quarter revenue guidance of $370 million to $380 million. Analyst firms have varied opinions on Trex’s stock, with DA Davidson maintaining a Neutral rating and a $60 price target, while Benchmark reiterated a Buy rating with an $80 target, citing strong demand for premium products. Conversely, Stephens reduced its price target to $65 from $73, noting challenges with gross margins due to lower production volumes and temporary cost increases. In other developments, Trex’s CFO Brenda Lovcik announced her resignation, with CEO Bryan Fairbanks set to assume interim CFO responsibilities. The company has initiated a search for a new CFO while reiterating its financial guidance for 2025.
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