Stocks Trex up 9% yesterday, and it’s not because the company’s leading manufacturer of wood-alternative decking material posted quarterly results of the explosion. It probably saw net sales up 12% to $ 67.9 million and posted a substantially narrow the deficit by $ 0.03 share, but analysts were expecting a smaller loss on the drive top-line 14%.
Also not Trex’s Guide for the current quarter that resulted in a welcome wave of investors to buy. Trex is targeting only $ 50 million to $ 55 million in net sales during the last three months of the year, both from more than $ 70 million that pro forecasting. Trex felt that Wall Street won’t be realistic here. At this time last year, Trex announced that the price will go up to the Transcend lines come in 2011, boosted by strong sales of its season buyers thinking ahead trying to get ahead of the hike.
If the past is not as good as Wall Street expected and now it’s even worse, why are Trex shares move higher yesterday? Well, the leader of the decking early guidance for 2012 pretty darn push. Feedback from the annual meeting of distributors find Trex anticipates net sales climbing by at least 25% during the first quarter, growing a “significant” for all the 2012.
This is good news for the Lumber Liquidators, specialist wood flooring are hosed down by expectations of 2011 is just a few days before the Trex fear investors with a similar warning. Summer swoon sense in retrospect. The economy is still fragile. House prices are still looking for the basics. Who would want to spend good money on a wooden plank or outdoor terrace for the House is worth less than its mortgage? Who can finance improvement projects under that scenario?
If the distributor Trex’s really pumped about 2012, it will naturally be good news for Home Depot and Lowe’s.