NEW YORK (TheStreet) -- Trex (TREX) hit an all-time high of $86.85 on Monday after the wood-alternative products maker announced fourth quarter results that smashed analysts' expectations and announced a stock split.
The company reported earnings of 23 cents a share, 17 cents greater than the Capital IQ consensus estimate of 6 cents a share. Revenue also increased 38.1% year over year to $63.8 million, which surpassed analysts' expectations of $50.48 million; however, Trex issued first-quarter revenue guidance of $115 million, less than the consensus estimate of $128.45 million.
Trex also announced that its board of directors has approved a two-for-one stock split of its common stock. This will take the form of a stock dividend that will be distributed on May 7 to shareholders of record at the close of business on April 7.
"We brought 2013 to a very strong finish," said Chairman, President and CEO Ronald W. Kaplan in the company's statement. "Expanded distribution and dealer demand across the country contributed significantly to sales and are helping us advance a key initiative -- increasing market share. Our best-in-class high-performance product platform, coupled with our recently revised pricing strategy, is being well received in the marketplace. Our robust sales increase fell to the bottom line, producing an impressive $6.0 million improvement over underlying net income in the 2012 quarter."
TheStreet Ratings team rates TREX CO INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: