Simpson Manufacturing (NYSE:SSD) Announces Earnings Results, Beats Estimates By $0.23 EPS

Key Points

• Simpson Manufacturing beat quarterly expectations: EPS came in at $2.68 versus the $2.45 consensus, while revenue reached $638.13 million, ahead of the $625.39 million estimate.
• Shares fell 1.1% to $182.41 despite the earnings beat. The company reported an 18.45% return on equity, a 15.65% net margin and a $7.50 billion market capitalization.
• Simpson Manufacturing declared a quarterly dividend of $0.30, equal to $1.20 annually and a 0.7% yield. Analysts maintain a mixed outlook, with an average “Hold” rating and a consensus price target of $214.25.

Simpson Manufacturing (NYSE:SSD - Get Free Report) announced its earnings results on Monday. The construction company reported $2.68 EPS for the quarter, beating analysts' consensus estimates of $2.45 by $0.23, FiscalAI reports. The business had revenue of $638.13 million during the quarter, compared to analysts' expectations of $625.39 million. Simpson Manufacturing had a return on equity of 18.45% and a net margin of 15.65%.

Simpson Manufacturing Trading Down 1.1%

Simpson Manufacturing stock traded down $1.95 during trading on Monday, reaching $182.41. 601,052 shares of the company were exchanged, compared to its average volume of 292,975. Simpson Manufacturing has a 52-week low of $156.32 and a 52-week high of $213.49. The company has a market capitalization of $7.50 billion, a P/E ratio of 19.94 and a beta of 1.32. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.29 and a quick ratio of 2.14. The stock's 50 day simple moving average is $177.93 and its two-hundred day simple moving average is $185.59.

Simpson Manufacturing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 28th. Investors of record on Thursday, January 7th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, January 7th. Simpson Manufacturing's dividend payout ratio (DPR) is currently 13.11%.

Insider Transactions at Simpson Manufacturing

In other Simpson Manufacturing news, CEO Michael Olosky sold 3,502 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $172.84, for a total value of $605,285.68. Following the completion of the sale, the chief executive officer directly owned 51,398 shares of the company's stock, valued at $8,883,630.32. This trade represents a 6.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.34% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on SSD shares. Stifel Nicolaus lowered their price target on Simpson Manufacturing from $218.00 to $210.00 and set a "buy" rating on the stock in a research note on Monday. UBS Group reissued a "neutral" rating on shares of Simpson Manufacturing in a research note on Tuesday, July 28th. Weiss Ratings restated a "buy (b-)" rating on shares of Simpson Manufacturing in a report on Thursday. Finally, Stephens lifted their target price on shares of Simpson Manufacturing from $210.00 to $215.00 and gave the stock a "cautious" rating in a research note on Tuesday, July 28th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Simpson Manufacturing currently has an average rating of "Hold" and a consensus target price of $214.25.

Simpson Manufacturing Company Profile

Simpson Manufacturing Co, Inc develops, manufactures and sells structural solutions for residential, commercial and industrial construction. Its products are designed to connect and reinforce wood, concrete and other building materials, supporting applications ranging from new construction to repair, remodeling and retrofit projects.

The company is best known for its Simpson Strong-Tie brand, which offers structural connectors, fasteners, anchors, specialty products, adhesives and related installation systems.

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