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Simpson Manufacturing (SSD) Tops Q1 EPS by 27c, Revenues Beat

April 26, 2021 4:18 PM EDT

Simpson Manufacturing (NYSE: SSD) reported Q1 EPS of $1.16, $0.27 better than the analyst estimate of $0.89. Revenue for the quarter came in at $347.6 million versus the consensus estimate of $313.83 million.

Management Commentary

"I am thrilled with our strong first quarter performance despite global macroeconomic turbulence stemming from the pandemic," commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "Our net sales grew 22.6% year-over-year to $347.6 million on significantly higher sales volume driven by ongoing momentum in the home center distribution channel where sales increased over 60% year-over-year due to higher activity in the repair and remodel space along with the return of Lowe's as a home center customer in the second quarter of 2020. Our sales further benefited from solid U.S. housing starts and strong demand trends in Europe as we continued to meet our customers' needs due to our solid inventory management practices amid broader supply chain shortages. Our gross margin expanded to 46.7% from 45.7% in the prior year quarter, which, when combined with our diligent expense management and reduced costs due to COVID-19, helped drive significant year-over-year increases in our income from operations to $68.4 million and our earnings per diluted share to $1.16."

Mrs. Colonias continued, "We believe our business model will support our ability to successfully execute on our recently announced key growth initiatives which focus on expansion into the OEM, repair & remodel / do-it-yourself ("R&R/DIY"), mass timber, concrete and structural steel markets. We aspire to be a leader in engineered load-rated construction fastening solutions and believe that there is a broad product opportunity within the OEM, R&R/DIY and mass timber markets. In addition, we are working to be a stronger leader in customer-facing technology to help our customers run their businesses more efficiently. We currently have existing products, testing results, distribution and manufacturing capabilities for all of our growth initiatives which are currently in different stages of development."

Mrs. Colonias concluded, "I'd like to thank all of our employees for their dedication to operational excellence, health and safety which has enabled our business to continue to operate during the pandemic from a position of strength. Our employees have been thoughtfully engaged with our leadership team as it pertains to our Company ambitions and growth initiatives to ensure a collaborative environment and to assist in the execution of our strategy. We are pleased to create opportunities to provide our customers with even more Simpson Strong-Tie structural solutions and technology as we execute against these initiatives and we look forward to capitalizing on our growth opportunities by leveraging our business model built on engineering, testing and innovation."

Business Outlook

On February 8, 2021, the Company provided a full-year outlook. The Company is updating its full year outlook, primarily reflecting one quarter of actual results, as well as improved visibility on the progression of pandemic-related restrictions and the impact of those restrictions on the Company's operations. Based on business trends and conditions as of today, April 26, the Company's outlook for the full fiscal year ending December 31, 2021 is as follows:

  • Operating margin is estimated to be in the range of 19.5% to 22.0%.
  • The effective tax rate is estimated to be in the range of 25.0% to 26.0%, including both federal and state income tax rates.
  • Capital expenditures are estimated to be in the range of $50 million to $55 million.

For earnings history and earnings-related data on Simpson Manufacturing (SSD) click here.



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