The AZEK Company Inc. (NYSE: AZEK) reported Q2 EPS of $0.25, $0.02 better than the analyst estimate of $0.23. Revenue for the quarter came in at $293.1 million versus the consensus estimate of $280.46 million.

OUTLOOK:

“We continue to believe that the strength and flexibility of our business model position us well to deliver long term value and outperformance in various market environments. As we look ahead to the remainder of our fiscal 2021, our increased guidance underscores our conviction in the sustained underlying demand we are seeing across our Residential segment, while channel inventory remains below benchmark levels. We remain highly optimistic about the strong trends in outdoor living and material conversion as well as our proven ability to deliver growth and margin expansion. We continue to pursue investments in growth for the long-term, and as a result, we are upsizing our overall capacity expansion program and increasing our 2021 capital expenditure guidance to be between $175 to $185 million, or an additional $50 to $60 million investment compared to our previous guidance. The upsized capacity investment is expected to result in both an incremental 15% decking capacity and expanded recycle capabilities in early 2022, on top of our prior 70% capacity expansion program,” added Mr. Singh.

AZEK is raising its outlook for the full year fiscal 2021. The outlook includes increased sales, recent pricing and productivity actions, strategic investments and inflation. AZEK now expects consolidated net sales growth of 23% to 26% year-over-year and Adjusted EBITDA growth in the 25% to 29% range year-over-year. From a segment perspective, AZEK expects Residential segment net sales growth of around 30% year-over-year, partially offset by a mid-single digit decline in Commercial segment net sales, which is consistent with prior guidance.

For the third quarter fiscal 2021 guidance, AZEK expects consolidated net sales growth in the 29% to 32% range year-over-year, driven by strong Residential segment growth in the mid-30% range, partially offset by expected flat net sales in the Commercial segment. AZEK is expecting Adjusted EBITDA growth in the 15% to 18% range year-over-year.

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