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Azek reports Q1 EPS (9c), consensus (10c)
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Azek reports Q1 EPS (9c), consensus (10c)

Reports Q1 revenue $216.3M, consensus $206.0M. "In the fiscal first quarter of 2023, we delivered financial results modestly ahead of expectations, driven by favorable sales combined with solid operational execution," said Jesse Singh, CEO of The AZEK Company. "We also concluded the Residential channel inventory normalization – a key focus of the past two quarters – which we believe will strengthen AZEK’s position ahead of the primary selling season later in the fiscal year. We executed against our stated growth initiatives in the quarter, with the successful launch of several new products and shelf space gains across both the Pro and Retail channels, building on our momentum from prior quarters and solidifying our position as the innovation leader in outdoor living. For 2023, we launched new TimberTech(R) decking colors, including Boardwalk(R), an on-trend grey weathered wood color option within our Advanced PVC Landmark CollectionTM, and Reclaimed ChestnutTM, a light tan-blonde weathered wood color option within our Composite Reserve Collection. We also announced two new high-performance PVC rail options, Statement RailTM and Pinnacle RailTM, adding a high-end PVC railing option to our expansive portfolio of aluminum and composite offerings. With positive customer receptivity to our new products and expanded share in the channel, these wins position AZEK well for the upcoming season and help advance our long-term goal of market expansion and conversion away from traditional materials to our types of low-maintenance, long-lasting, and sustainable materials. We continue to progress against our recycle goals, including the recent announcement of recycling partnerships with thredUP and Trusscore. These new AZEK recycle partners will be supplying us with their post-consumer and post-industrial polyethylene or PVC scrap and waste, which we will re-purpose into products across our outdoor living portfolio. We have a clear strategy and AZEK-specific initiatives to drive above-market growth and margin expansion. With traditional materials such as wood continuing to represent approximately 40% to 75% of our core markets, we are confident that we are in the early stages of market conversion and remain excited about the compelling long-term opportunities in front of AZEK."

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