Simpson Manufacturing (NYSE:SSD) Announces Quarterly Earnings Results, Beats Expectations By $0.37 EPS

Key Points

• Simpson Manufacturing beat quarterly expectations: EPS came in at $3.09, exceeding the $2.72 consensus by $0.37, while revenue of $671.08 million also surpassed estimates of $658.76 million.
• The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 0.6% yield, with a 14.07% payout ratio.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $214.75; shares recently traded near $192.82, while institutional investors and hedge funds own 93.68% of the stock.

Simpson Manufacturing (NYSE:SSD - Get Free Report) issued its earnings results on Monday. The construction company reported $3.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.72 by $0.37, FiscalAI reports. The firm had revenue of $671.08 million for the quarter, compared to analysts' expectations of $658.76 million. Simpson Manufacturing had a net margin of 14.92% and a return on equity of 17.72%.

Simpson Manufacturing Price Performance

Shares of NYSE SSD traded down $1.06 during mid-day trading on Monday, reaching $192.82. 261,792 shares of the company traded hands, compared to its average volume of 292,184. Simpson Manufacturing has a fifty-two week low of $156.32 and a fifty-two week high of $213.49. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.40 and a quick ratio of 2.02. The firm has a market cap of $7.93 billion, a PE ratio of 22.60 and a beta of 1.30. The stock has a fifty day simple moving average of $192.35 and a 200-day simple moving average of $186.81.

Simpson Manufacturing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Thursday, October 1st will be issued a $0.30 dividend. The ex-dividend date is Thursday, October 1st. This represents a $1.20 annualized dividend and a dividend yield of 0.6%. Simpson Manufacturing's dividend payout ratio (DPR) is 14.07%.

Hedge Funds Weigh In On Simpson Manufacturing

Several hedge funds have recently modified their holdings of SSD. EverSource Wealth Advisors LLC boosted its stake in Simpson Manufacturing by 135.3% during the second quarter. EverSource Wealth Advisors LLC now owns 160 shares of the construction company's stock valued at $25,000 after buying an additional 92 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of Simpson Manufacturing in the 4th quarter worth approximately $32,000. Brown Brothers Harriman & Co. acquired a new stake in Simpson Manufacturing during the third quarter valued at approximately $34,000. Smartleaf Asset Management LLC grew its position in Simpson Manufacturing by 33.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 226 shares of the construction company's stock worth $37,000 after buying an additional 57 shares during the last quarter. Finally, Empowered Funds LLC acquired a new stake in shares of Simpson Manufacturing during the 4th quarter valued at $51,000. 93.68% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms recently issued reports on SSD. Wall Street Zen lowered Simpson Manufacturing from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. Stephens raised their target price on Simpson Manufacturing from $200.00 to $210.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 28th. Stifel Nicolaus boosted their price target on shares of Simpson Manufacturing from $205.00 to $217.00 and gave the company a "buy" rating in a report on Tuesday, April 28th. DA Davidson increased their price objective on shares of Simpson Manufacturing from $200.00 to $212.00 and gave the stock a "neutral" rating in a report on Tuesday, April 28th. Finally, Weiss Ratings upgraded shares of Simpson Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $214.75.

Simpson Manufacturing Company Profile

Simpson Manufacturing Co, Inc, through its Simpson Strong-Tie® brand, is a leading global supplier of structural building products. The company specializes in the design, testing, manufacture and supply of connectors, anchors, fasteners and lateral systems that enhance the safety and performance of wood, concrete and masonry structures. Its product portfolio also includes repair and strengthening systems, concrete reinforcement and high-performance adhesives used in residential, commercial and industrial construction projects.

Founded in 1956 by Barclay Simpson in Oakland, California, Simpson Manufacturing has grown from a single product business into a diversified manufacturer with worldwide operations.

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