NYSE$SSD

Simpson Manufacturing Co Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Simpson's financial performance for Q1 2022 was marked by substantial revenue growth and improved profitability.

Simpson Manufacturing Co. reported a significant increase in net sales, gross profit, and income from operations in Q1 2022. Net sales increased by 42.0% year-over-year, driven by product price increases. The acquisition of the ETANCO Group was completed on April 1, 2022, further supporting growth initiatives.

  • Net sales increased by 42.0% year-over-year to $493.6 million.
  • Gross margin improved to 48.0% from 46.7% in the prior year period.
  • Income from operations increased by 82.0% year-over-year to $124.4 million.
  • Earnings per diluted share increased by 87.9% year-over-year to $2.18.

Headline financials

Total Revenue

$494M

Previous: $348M+42.0%
EPS (adj)

$2.18

Previous: $1.16+87.9%
Gross Profit Margin

48.0%

Previous: 46.7%+2.8%
Operating Income Margin

25.2%

Previous: 19.7%+27.9%
Capital Expenditures

-$17.8M

Previous: -$10.5M-69.7%
Free Cash Flow

$76.8M

Previous: $39.9M+92.5%
Net Income

$94.6M

Previous: $50.4M+87.7%
Operating Income

$124M

Previous: $68.4M+82.0%
Gross Profit

$237M

Previous: $162M+45.9%
Cash & Equivalents

$984M

Previous: $257M+282.4%
Total Assets

$2.28B

Previous: $1.29B+76.1%
Stock-Based Comp

$4.87M

Previous: $6.54M-25.5%

Revenue & EPS history

Simpson · Revenue · Quarterly

$494M

Q1 2022+42%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Simpson · $494M total across 3 segments · Q1 2022

  • North America
    $439M+46.0%
  • Europe
    $51.5M+16.1%
  • Asia/Pacific
    $3.39M+21.8%

Forward guidance

The company updated its 2022 financial outlook to include the acquisition of ETANCO, one quarter of actual results, and its latest expectations regarding demand trends, raw material costs and operating expenses.

Tailwinds

  • Operating margin is expected to be in the range of 19.0% to 20.0%.
  • Improved outlook for the overall market and Simpson.
  • Revised outlook includes projected results for ETANCO.
  • Focus on organic growth.
  • Returning value to stockholders through dividends and selectively repurchasing shares.

Headwinds

  • Integration and transaction costs of $15.0 to $17.0 million related to ETANCO.
  • Interest expense on debt is expected to be approximately $11.0 million.
  • Effective tax rate is expected to be in the range of 25.5% to 26.5%.
  • Capital expenditures are expected to be in the range of $65.0 million to $70.0 million.
  • Uncertainties surrounding the impact of the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.6%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+4.4%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+21.5%

Q1 2020

Best reaction

-10.6%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+2.9%+2.5%
Q4 2025+5.0%+6.6%-9.0%
Q3 2025+6.0%+0.4%-4.4%
Q2 2025-2.2%-1.5%-1.3%
Q1 2025+0.2%+2.1%+1.6%
Q4 2024+1.5%+4.4%-7.5%
Q3 2024-7.4%-4.6%-5.8%
Q2 2024-1.2%+6.1%-0.6%
Q1 2024-8.2%-5.8%-6.6%
Q4 2023-3.5%+2.8%+13.4%
Q3 2023-4.5%-2.5%+23.2%
Q2 2023+6.7%+5.8%+4.7%
Q1 2023+9.1%+11.1%+7.6%
Q4 2022+2.7%-1.4%-2.2%
Q3 2022+7.9%+9.3%+18.7%
Q2 2022-3.8%-4.8%-8.6%
Q1 2022+0.6%-1.0%-1.2%
Q4 2021+10.9%+6.5%+8.5%
Q3 2021-6.6%-7.6%+4.3%
Q2 2021-2.8%+0.8%+1.6%
Q1 2021+6.5%+5.0%+6.5%
Q4 2020-4.3%-4.6%+7.7%
Q3 2020-7.6%-8.5%-4.2%
Q2 2020+0.8%+6.5%+10.5%
Q1 2020+21.5%+17.3%+36.6%
Q4 2019+4.6%+4.7%+2.5%
Q3 2019+9.5%+11.8%+8.9%
Q2 2019-10.6%-6.5%-5.6%
Q1 2019+2.7%+7.7%-0.2%
Q4 2018-6.6%-5.4%-2.4%
Q3 2018-0.2%+4.1%+3.4%
Q2 2018+21.5%+22.8%+27.6%
Q1 2018+6.7%+6.9%+16.0%
Q4 2017-1.6%-4.2%-2.6%
Q3 2017+12.9%+19.6%+21.1%
Q2 2017-0.4%+1.2%-2.2%
Q1 2017-3.0%-3.0%-6.2%
Q4 2016-0.5%-0.9%-2.6%
Q3 2016+2.5%+3.6%+16.4%
Q2 2016-1.8%-1.7%+5.2%
Q1 2016+0.4%
Q4 2015+2.5%
Q3 2015+2.3%
Q2 2015-2.0%
Q1 2015-4.2%
Q4 2014+1.2%
Q3 2014+1.7%
Q2 2014-5.0%
Q1 2014+1.6%
Q4 2013+3.9%
Q3 2013+7.1%
Q2 2013+4.8%
Q1 2013-9.3%
Q4 2012-7.1%
Q3 2012-0.6%
Q2 2012-5.0%
Q1 2012+0.1%
Q4 2011-3.5%
Q3 2011-0.0%
Q2 2011-3.6%
Q1 2010-0.9%
Q1 2011+2.4%
Q4 2010-3.7%
Q4 2008-3.7%
Q3 2009-2.1%
Q3 2010-2.1%
Q4 2009+1.1%
Q2 2010+1.1%
Q2 2009+1.1%

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