NYSE$SSD

Simpson Manufacturing Co Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported an increase in net sales and income from operations compared to the prior year period.

Simpson Manufacturing Co. announced strong Q3 2021 financial results, with net sales reaching $396.7 million, an 8.9% increase year-over-year. Income from operations rose to $100.6 million, contributing to diluted earnings per share of $1.70. The company experienced lighter sales volumes in North America due to customer inventory adjustments amidst challenging labor and supply chain conditions.

  • Net sales increased by 8.9% year-over-year, reaching $396.7 million.
  • Gross margin improved to 49.9% from 47.6% in the prior year period.
  • Income from operations increased by 10.2% year-over-year, totaling $100.6 million.
  • Earnings per diluted share increased by 10.4% year-over-year, reaching $1.70.

Headline financials

Total Revenue

$397M

Previous: $364M+8.9%
EPS (adj)

$1.70

Previous: $1.54+10.4%
Gross Profit Margin

49.9%

Previous: 47.6%+4.8%
Operating Income Margin

25.4%

Previous: 25.1%+1.2%
Capital Expenditures

-$31.3M

Previous: -$20.9M-49.8%
Free Cash Flow

$42.5M

Previous: $46.2M-8.0%
Net Income

$73.8M

Previous: $67.1M+10.0%
Operating Income

$101M

Previous: $91.3M+10.2%
Gross Profit

$198M

Previous: $173M+14.3%
Cash & Equivalents

$294M

Previous: $311M-5.5%
Total Assets

$1.42B

Previous: $1.28B+11.3%
Stock-Based Comp

$3.15M

Previous: $4.03M-22.0%

Revenue & EPS history

Simpson · Revenue · Quarterly

$397M

Q3 2021+8.9%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Simpson · $397M total across 3 segments · Q3 2021

  • North America
    $339M+6.8%
  • Europe
    $54.8M+22.5%
  • Asia/Pacific
    $3.32M+25.8%

Forward guidance

The Company is updating certain elements of its outlook, primarily reflecting actual results of the third quarter as well as the Company's latest views on demand trends, raw material input costs and operating expenses. The Company's outlook for the full fiscal year ending December 31, 2021 is as follows:

Tailwinds

  • Operating margin is estimated to be in the range of 20.0% to 22.0%.
  • The effective tax rate is estimated to be in the range of 25.0% to 26.0%, including both federal and state income tax rates.
  • Capital expenditures are estimated to be in the range of $55 million to $60 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 Q3 2021

Historical avgQ3 2021

+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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