CHICAGO - The AZEK Company Inc. (NYSE: AZEK), a leading designer and manufacturer of outdoor living products, has received a non-compliance notice from the New York Stock Exchange (NYSE) due to the delay in filing its quarterly financial report. The company acknowledged the receipt of the notice on Thursday, which indicated that AZEK had not adhered to the NYSE's listing standards by failing to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, within the prescribed timeframe.
The notice, which AZEK expected, does not immediately affect the company's stock listing on the NYSE. Under the exchange's rules, AZEK has a six-month period, until November 15, 2024, to file the overdue report and regain compliance. The NYSE may extend this period by a further six months depending on the circumstances. However, the exchange also reserves the right to initiate delisting procedures at any point if deemed necessary.
AZEK previously disclosed in a Notification of Late Filing on May 8, 2024, that it required more time to complete restated consolidated financial statements for several past fiscal years and interim periods, as well as for the quarter ended December 31, 2023. Despite dedicating significant resources to this effort, the company was unable to meet the extended deadline of May 15, 2024.
The restatement of financials is related to discrepancies identified in previous reports for fiscal years ended September 30 of 2023, 2022, and 2021. AZEK expects to file the required Form 10-Q within the next 30 days.
AZEK is known for its TimberTech® decking and railing, Versatex® and AZEK® Trim, and StruXure® pergolas. The company has been recognized for its commitment to sustainability, with products made from up to 85% recycled material. It operates manufacturing and recycling facilities across the United States and is headquartered in Chicago, Illinois.
InvestingPro Insights
Amidst the recent notification of non-compliance by the NYSE, The AZEK Company Inc. (NYSE: AZEK) continues to demonstrate financial metrics that may interest investors. According to real-time data from InvestingPro, AZEK's market capitalization stands at a robust $6.81 billion. The company's P/E ratio is currently high at 74.4, reflecting investor confidence in its future earnings potential. Additionally, AZEK's revenue has grown by 6.28% over the last twelve months as of Q1 2024, with a quarterly growth rate of 11.18% in Q1 2024, indicating a positive trajectory in sales.
Two notable InvestingPro Tips for AZEK include the expectation of net income growth this year and four analysts revising their earnings upwards for the upcoming period. These insights suggest a bullish outlook on the company's financial performance, despite the current hiccup with the NYSE listing standards. Furthermore, AZEK's stock has experienced a significant 50.45% price return over the last six months, signaling strong market enthusiasm for the company's shares.
Investors interested in a deeper analysis can find additional InvestingPro Tips on AZEK, including insights into valuation multiples and debt management. For those considering an investment in AZEK, there are currently 15 additional tips listed on InvestingPro, accessible through the specific company page at https://www.investing.com/pro/AZEK. To enrich your investment strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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