Simpson Manufacturing (NYSE: SSD) reported Q3 EPS of $0.97, $0.07 better than the analyst estimate of $0.90. Revenue for the quarter came in at $309.9 million versus the consensus estimate of $290.34 million.

• Net sales of $309.9 million increased 9.1% year-over-year on stronger sales volumes
• Europe operating income of $5.4 million increased 36.3% year-over-year on reduced operating expenses
• Repurchased $21.4 million of the Company's common stock during the quarter
• Declared a $0.23 per share cash dividend

Management Commentary

"Our 2019 third quarter net sales of $309.9 million were up 9% year-over-year primarily due to higher sales volume throughout almost all areas of our company and despite the strike at our Stockton facility during the month of September," commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "U.S. housing starts, which are a leading indicator for approximately 60% of our business, grew by approximately 4.1% versus the comparable period last year. Notably, in the south where we provide a meaningful amount of content into homes, starts grew 8.3% year-over-year. We also experienced an increase in volumes over the second quarter of 2019 due primarily to unusually wet and cold weather conditions across the U.S. in the first half of 2019."

Mrs. Colonias concluded, "As anticipated our third quarter gross margins were impacted by higher labor, factory and overhead, and material costs which we expect to continue for the remainder of 2019. That said, we are pleased with our third quarter results, including solid progress in Europe and our inventory management. We are cautiously optimistic U.S. housing starts will continue to improve, helping to drive our sales higher. We remain confident in our ability to execute against our key operating initiatives and 2020 Plan goals to drive long-term shareholder value and improved earnings power."

Business Outlook

Based on current business trends and conditions, the Company's outlook for the full fiscal year ending December 31, 2019 is as follows:

• Gross margin is estimated to be in the range of approximately 43.5% to 44.0%.
• Operating expenses, as a percentage of net sales, are estimated to be in the range of approximately 27.5% to 28.5%.
• The effective tax rate is estimated to be in the range of approximately 25.5% to 26.5%, including both federal and state income tax rates.

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