What happened Shares of Trex (NYSE: TREX) have fallen today, down by 6% as of 12:35 p.m. EDT, after the company reported second-quarter earnings. It also announced a 2-for-1 stock split. So what Revenue in the second quarter was $221 million, ahead of the $201 million in sales that analysts were expecting. That translated into net income of $47 million, or $0.81 per share, also topping the consensus estimate of $0.65 per share in profit. Image source: Getty Images. The company, which makes industrial decking products, added $100 million in borrowing capacity to its revolver in May to reduce risk around COVID-19 and increase financial flexibility. Trex had no outstanding borrowings from the credit facility at the end of the quarter. Now what Trex had previously withdrawn its full-year guidance due to uncertainty related to the pandemic but is now comfortable issuing a new outlook for 2020. The company expects 2020 gross margin to be 45% to 50%, including expenses related to COVID-19, and full-year selling, general, and administrative (SG&A) expenses are expected to improve by 80 to 100 basis points. Capital spending for 2020 should be $150 million to $170 million. For the third quarter, revenue is forecast to be $215 million to $225 million, ahead of the $195.2 million in sales that analysts are expecting. The 2-for-1 stock split will take effect on Sept. 14. "First half results give us confidence that 2020 will be another year of strong growth for Trex," CEO Bryan Fairbanks said. "Additionally, market leadership, brand recognition and strong channel partnerships have enabled Trex to gain share from the large wood market as consumers increasingly recognize the benefits of Trex composite products." 10 stocks we like better than TrexWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Trex wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Trex. The Motley Fool has a disclosure policy.Source