NYSE$SSD

Simpson Manufacturing Co Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Simpson's Q4 2021 financial performance showcased substantial year-over-year growth, driven by strategic price increases and strong demand.

Simpson Manufacturing Co., Inc. reported a strong fourth quarter in 2021, with net sales increasing by 42.4% to $418.6 million and net income per diluted share rising by 136.8% to $1.61. The company's performance was driven by effective price management and increased sales volumes, particularly in North America. Additionally, Simpson announced an agreement to acquire Etanco Group, signaling a strategic move to expand its European presence.

  • Net sales for Q4 2021 increased by 42.4% year-over-year, reaching $418.6 million.
  • Net income per diluted share for Q4 2021 increased by 136.8% year-over-year, amounting to $1.61.
  • Consolidated gross profit increased by 60.3% compared to the same period last year, with gross margin rising to 47.4%.
  • An agreement was announced to acquire Etanco Group for $818 million, aimed at expanding Simpson's European market presence.

Headline financials

Total Revenue

$419M

Previous: $294M+42.4%
EPS (adj)

$1.61

Previous: $0.68+136.8%
Gross Profit Margin

47.4%

Previous: 42.1%+12.6%
Operating Income Margin

23.2%

Previous: 13.4%+73.1%
Capital Expenditures

$12.5M

Previous: $17M-26.9%
Free Cash Flow

$16.7M

Previous: $60.9M-72.5%
Net Income

$69.8M

Previous: $29.6M+135.5%
Operating Income

$97.1M

Previous: $39.5M+146.1%
Gross Profit

$198M

Previous: $124M+60.3%
Cash & Equivalents

$301M

Previous: $275M+9.7%
Total Assets

$1.48B

Previous: $1.23B+20.4%
Stock-Based Comp

$4.32M

Previous: $4.05M+6.8%

Revenue & EPS history

Simpson · Revenue · Quarterly

$419M

Q4 2021+42.4%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Simpson · $419M total across 3 segments · Q4 2021

  • North America
    $373M+49.8%
  • Europe
    $41.4M-1.0%
  • Asia/Pacific
    $3.9M+33.0%

Forward guidance

Based on current business trends, the Company's outlook for the full fiscal year ending December 31, 2022, excluding the impact of the Etanco acquisition, includes an operating margin estimated to be in the range of 17.5% to 19.0% and capital expenditures estimated to be in the range of $65 million to $70 million.

Tailwinds

  • Operating margin is estimated to be in the range of 17.5% to 19.0%.
  • The effective tax rate is estimated to be in the range of 25.5% to 26.5%.
  • Capital expenditures are estimated to be in the range of $65 million to $70 million.
  • Company ambitions and strategic growth initiatives by 2025 remain on track.
  • Acquisition of Etanco Group expected to support growth in European business.

Headwinds

  • Magnitude and duration of the COVID-19 pandemic and its impact on general economic conditions remain uncertain.
  • Ongoing uncertainties surrounding the impact of the COVID-19 pandemic on the Company’s business.
  • Economic impact on operations.
  • Raw material costs, consumers, suppliers and vendors may have a material adverse impact on the Company’s financial outlook.
  • Tight labor market

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 Q4 2021

Historical avgQ4 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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