NYSE$SSD

Simpson Manufacturing Co Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Simpson's Q3 2024 financial results were announced, with net sales showing a slight increase year-over-year.

Simpson Manufacturing Co., Inc. reported a modest increase in net sales for Q3 2024, despite pressures in the housing markets of the U.S. and Europe. While sales in North America were relatively flat, Europe saw a modest increase due to new customer wins and product applications. However, overall profitability remained below expectations, prompting the company to adjust costs to align with market conditions.

  • Net sales increased by 1.2% year-over-year, reaching $587.2 million.
  • Operating income margin was 21.3%, with an income from operations of $124.9 million.
  • Net income per diluted share was reported at $2.21.
  • The full-year 2024 outlook was revised based on reduced housing start expectations.

Headline financials

Total Revenue

$587M

Previous: $580M+1.2%
EPS

$2.21

Previous: $2.43-9.1%
Gross Profit Margin

46.8%

Previous: 48.8%-4.1%
Total Operating Expenses

$149M

No prior period
Operating Income Margin

21.3%

Previous: 24.2%-12.0%
Adjusted EBITDA

$149M

No prior period
Capital Expenditures

-$125M

Previous: -$57.5M-117.2%
Free Cash Flow

-$31.3M

Previous: $46.5M-167.3%
Net Income

$93.5M

Previous: $104M-10.1%
Operating Income

$125M

Previous: $140M-11.0%
Gross Profit

$275M

Previous: $283M-2.8%
Cash & Equivalents

$339M

Previous: $571M-40.6%
Total Assets

$2.9B

Previous: $2.82B+2.9%
R&D Expense

$23.7M

Previous: $24.8M-4.3%
Stock-Based Comp

$5.59M

Previous: $6.63M-15.6%

Revenue & EPS history

Simpson · Revenue · Quarterly

$587M

Q3 2024+1.2%vs Q3 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 three quarters of financial information to reflect its latest expectations regarding demand trends, cost of sales, and operating expenses.

Tailwinds

  • Operating margin is estimated to be in the range of 19.0% to 19.5%.
  • The effective tax rate is estimated to be in the range of 25.3% to 25.8%, including both federal and state income tax rates as well as international income tax rates, and assuming no tax law changes are enacted.
  • Capital expenditures are estimated to be in the range of $175.0 million to $185.0 million.
  • Capital expenditures includes $90.0 million to $100.0 million for the Columbus, Ohio facility expansion.
  • Capital expenditures includes the new Gallatin, Tennessee fastener facility construction with the remaining spend carrying over into 2025.

Headwinds

  • U.S. housing starts will be down from the prior year.

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 2024

Historical avgQ3 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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