NYSE$SSD

Simpson Manufacturing Co Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Simpson Manufacturing Co. Inc. reported a net sales increase of 13.6% year-over-year, driven by product price increases and the acquisition of ETANCO.

Simpson Manufacturing Co. Inc. reported Q4 2022 financial results, featuring a 13.6% increase in net sales to $475.6 million compared to the previous year. The growth was primarily driven by product price increases and the acquisition of ETANCO. Net income decreased to $57.6 million, or $1.35 per diluted share, compared to $69.8 million, or $1.61 per diluted share, in the same quarter of the previous year.

  • Consolidated net sales increased by 13.6% to $475.6 million, up from $418.6 million year-over-year.
  • North America net sales decreased by 1.4% to $368.1 million, impacted by lower sales volumes.
  • Europe net sales increased significantly by 150.3% to $103.7 million, largely due to the ETANCO acquisition.
  • Net income decreased to $57.6 million, or $1.35 per diluted share, compared to $69.8 million, or $1.61 per diluted share, in the prior year.

Headline financials

Total Revenue

$476M

Previous: $419M+13.6%
EPS (adj)

$1.35

Previous: $1.61-16.1%
Gross Profit Margin

42.2%

Previous: 47.4%-11.0%
Operating Income Margin

16.6%

Previous: 23.2%-28.4%
Capital Expenditures

$20.8M

Previous: $12.5M+67.0%
Free Cash Flow

$116M

Previous: $16.7M+590.6%
Net Income

$57.6M

Previous: $69.8M-17.5%
Operating Income

$78.7M

Previous: $97.1M-18.9%
Gross Profit

$201M

Previous: $198M+1.2%
Cash & Equivalents

$301M

Previous: $301M-0.1%
Total Assets

$2.5B

Previous: $1.48B+68.7%
Stock-Based Comp

$1.99M

Previous: $4.32M-53.9%

Revenue & EPS history

Simpson · Revenue · Quarterly

$476M

Q4 2022+13.6%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Simpson · $476M total across 3 segments · Q4 2022

  • North America
    $368M-1.4%
  • Europe
    $104M+150.3%
  • Asia/Pacific
    $3.78M-3.0%

Forward guidance

Simpson Manufacturing provided its outlook for the full fiscal year ending December 31, 2023, estimating an operating margin between 18% and 20%. Interest expense is expected to be approximately $9.7 million, and the effective tax rate is estimated to be in the range of 25% to 26%. Capital expenditures are projected to be between $90.0 million and $95.0 million.

Tailwinds

  • Operating margin is estimated to be in the range of 18% to 20%.
  • Interest expense is expected to be approximately $9.7 million.
  • The effective tax rate is estimated to be in the range of 25% to 26%.
  • Capital expenditures are estimated to be in the range of $90.0 million to $95.0 million.
  • Company remains well positioned to capture meaningful benefits from the synergies

Headwinds

  • Plans were developed to realize the Company’s previously identified synergies in the years ahead which resulted in additional costs in 2022 that are expected to continue in 2023.
  • Macroeconomic circumstances will delay some of the synergy opportunities.
  • Softer market forecasts for U.S. housing starts.
  • North America net sales were negatively impacted by $1.3 million in foreign currency translation.
  • Consolidated operating margin decreased to 16.6% from 23.2%.

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 2022

Historical avgQ4 2022

+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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