NYSE$SSD

Simpson Manufacturing Co Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Simpson Manufacturing Co. Inc. reported an increase in net sales and earnings per share for the second quarter of 2020.

Simpson Manufacturing Co. Inc. announced strong second-quarter results with a 7.0% increase in net sales to $326.1 million and diluted earnings per share of $1.22, a 38.6% increase year-over-year. The company's performance was driven by higher sales volumes, particularly in North America, and improved gross margins.

  • Net sales increased by 7.0% year-over-year to $326.1 million.
  • Gross margin improved to 45.9%, up 1.9% year-over-year.
  • Income from operations rose by 34.6% year-over-year to $72.2 million.
  • Diluted earnings per share increased by 38.6% year-over-year to $1.22.

Headline financials

Total Revenue

$326M

Previous: $305M+7.0%
EPS (adj)

$1.22

Previous: $0.88+38.6%
Gross Profit Margin

45.9%

No prior period
Operating Income Margin

22.1%

No prior period
Capital Expenditures

-$14.1M

Previous: -$15.3M+7.7%
Free Cash Flow

$39.4M

Previous: $24.3M+62.0%
Net Income

$53.5M

Previous: $39.6M+35.1%
Operating Income

$72.2M

Previous: $53.7M+34.6%
Gross Profit

$150M

Previous: $134M+11.6%
Cash & Equivalents

$315M

Previous: $142M+122.6%
Total Assets

$1.28B

Previous: $1.07B+20.1%
Stock-Based Comp

$5.15M

Previous: $2.5M+106.5%

Revenue & EPS history

Simpson · Revenue · Quarterly

$326M

Q2 2020+7%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Simpson · $326M total across 3 segments · Q2 2020

  • North America
    $287M+10.7%
  • Europe
    $37.4M-14.4%
  • Asia/Pacific
    $1.89M-11.4%

Forward guidance

The Company expects full year net sales and gross margin will improve year-over-year in 2020, subject to circumstances outside of its control related to the COVID-19 pandemic.

Tailwinds

  • Net sales are estimated to increase in the range of 1.5% to 4.0% compared to the full year ended December 31, 2019.
  • Gross margin is estimated to be in the range of 43.0% to 45.0%.
  • The company believes the solid demand trends experienced in Q2 2020 from the addition of Lowe’s and improved repair and remodel market will continue.
  • Emphasis on enhancing operating efficiencies and cost savings.
  • Industry leadership position, geographic reach and diverse product offerings, combined with strong balance sheet and liquidity position.

Headwinds

  • Ongoing uncertainties surrounding the impact of COVID-19 on Simpson’s business.
  • Economic impact on its operations.
  • Raw material costs.
  • Impact on consumers, suppliers and vendors.
  • Other factors outside of its control.

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 Q2 2020

Historical avgQ2 2020

+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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