NYSE$SSD
Simpson Manufacturing Co Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Simpson's financial performance improved in Q2 2023, driven by increased sales and improved gross margins.
Simpson Manufacturing Co. reported a 0.7% increase in net sales to $597.6 million in Q2 2023. Income from operations increased by 9.0% to $145.0 million, and diluted earnings per share rose by 15.7% to $2.50. The company's performance was driven by improved volumes in North America and a focus on innovation and growth initiatives.
- Consolidated net sales increased by 0.7% year-over-year, reaching $597.6 million.
- North America net sales increased by 2.0%, driven by higher volumes.
- Consolidated gross profit increased by 10.8% to $287.5 million, with gross margin rising to 48.1%.
- Net income increased to $107.2 million, or $2.50 per diluted share, compared to $93.6 million, or $2.16 per diluted share in the previous year.
Headline financials
Revenue & EPS history
Simpson · Revenue · Quarterly
$598M
Revenue by segment
Simpson · $598M total across 3 segments · Q2 2023
- North America$465M+2.0%77.9%
- Europe$128M-4.1%21.4%
- Asia/Pacific$4.3M+19.9%0.7%
Forward guidance
The Company has updated its 2023 financial outlook based on two quarters of financial information to reflect its latest expectations regarding demand trends, raw material costs and operating expenses.
Tailwinds
- Operating margin is now estimated to be in the range of 20.5% to 21.5%.
- The effective tax rate is estimated to be in the range of 25% to 26%, including both federal and state income tax rates and assuming no tax law changes are enacted.
- Capital expenditures are estimated to be in the range of $105.0 million to $115.0 million.
- The Company continues to make progress on its efforts to integrate ETANCO into its operations
- Management continues to believe the Company remains well positioned to capture meaningful benefits from these synergies
Headwinds
- The market continues to improve relative to our earlier outlook
- 2023 housing starts will finish below 2022 levels
- Europe net sales were down 4.1% year-over-year on lower volumes
- These efforts will continue to result in additional costs in 2023 that have been planned since the Company announced the transaction.
- macroeconomic changes, which are expected to delay realization of some of the offensive synergy opportunities.
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 2023
+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
| Quarter | Report date | Reaction (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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