AZEK Gears Up to Report Q2 Earnings: What's in the Offing?

Core Viewpoint - The AZEK Company Inc. is expected to report strong second-quarter fiscal 2024 results, with significant year-over-year growth in earnings and net sales driven by its Residential segment despite challenges in the Commercial segment [1][2][3]. Revenue Performance - The Zacks Consensus Estimate for adjusted earnings per share has increased to 38 cents, reflecting a 111.1% rise from 18 cents in the same quarter last year [2]. - Net sales are projected at $414.7 million, indicating a 9.8$377.7 million reported in the prior year [2]. - The Residential segment is expected to generate net sales of $396 million, a 15.8$16.8 million from 35.6 million a year ago [4]. Factors Influencing Growth - The growth in revenues is attributed to strong performance in the Residential segment, driven by material conversion, recent shelf space gains, and new product innovations [3]. - Demand in product categories such as Deck, Rail & Accessories, and Exteriors is expected to support revenue growth, although the divestiture of the Vycom business has negatively impacted the Commercial segment [3][4]. Margin Expectations - The company anticipates adjusted EBITDA between 108 million and $112 million, with an adjusted EBITDA margin of 26.5$72.8 million and 19.3% in the same quarter last year [5]. Earnings Prediction Insights - The current model indicates that AZEK may not achieve an earnings beat this quarter, as it lacks a positive Earnings ESP and a strong Zacks Rank [6].