NYSE$SSD

Simpson Manufacturing Co Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Simpson Manufacturing Co., Inc. reported a decrease in net sales and operating income for Q1 2024.

Simpson Manufacturing Co., Inc. announced its Q1 2024 financial results, with net sales of $530.6 million, a slight decrease of 0.7% compared to the previous year. Income from operations decreased by 18.8% to $96.1 million, and net income per diluted share decreased to $1.77.

  • Consolidated net sales decreased by 0.7% to $530.6 million.
  • North America net sales increased by 0.1% to $406.7 million, driven by an 8% increase in sales volumes.
  • Consolidated income from operations decreased by 18.8% to $96.1 million.
  • Net income decreased by 14.3% to $75.4 million, with earnings per diluted share at $1.77.

Headline financials

Total Revenue

$531M

Previous: $534M-0.7%
EPS

$1.77

Previous: $2.05-13.7%
Gross Profit Margin

46.1%

Previous: 47.3%-2.5%
Total Operating Expenses

$147M

Previous: $133M+10.1%
Operating Income Margin

18.1%

Previous: 22.1%-18.1%
Adjusted EBITDA

$117M

No prior period
Capital Expenditures

-$39.4M

Previous: -$18.8M-110.1%
Free Cash Flow

$36M

Previous: $69.2M-47.9%
Net Income

$75.4M

Previous: $88M-14.2%
Operating Income

$96.1M

Previous: $118M-18.8%
Gross Profit

$245M

Previous: $253M-3.3%
Cash & Equivalents

$369M

Previous: $253M+46.2%
Total Assets

$2.72B

Previous: $2.56B+6.5%
R&D Expense

$21.9M

No prior period
Stock-Based Comp

$5.35M

Previous: $4.63M+15.5%

Revenue & EPS history

Simpson · Revenue · Quarterly

$531M

Q1 2024-0.7%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Simpson · $580M total across 3 segments · Q3 2023

  • North America
    $457M+4.4%
  • Europe
    $119M+6.4%
  • Asia/Pacific
    $4.22M+5.8%

Forward guidance

The Company has updated its 2024 financial outlook based on one quarter of financial information to reflect its latest expectations regarding demand trends, raw material costs and operating expenses. The Company's outlook for the full fiscal year ending December 31, 2024 is as follows: Operating margin is estimated to be in the range of 20.0% to 21.5%.

Tailwinds

  • Operating margin is estimated to be in the range of 20.0% to 21.5%.
  • The effective tax rate is estimated to be in the range of 24.5% to 25.5%.
  • Expanding facilities for increased capacity.
  • Improving overall efficiencies to provide high-levels of service and customer support.
  • Strategic investments will help accelerate historical average performance.

Headwinds

  • Challenging market for new housing starts in both the U.S. and Europe.
  • European housing starts below prior year.
  • Macroeconomic challenges and lower overall construction activity continued to pressure volumes in Europe.
  • Costs incurred to drive organic growth in the business including significant investments in people, engineering, equipment and other capabilities.
  • Capital expenditures are estimated to be approximately $185.0 million.

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 2024

Historical avgQ1 2024

+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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