Simpson Manufacturing (SSD) Misses Q4 EPS by 26c, Revenues Miss

Simpson Manufacturing (NYSE: SSD) reported Q4 EPS of $0.34, $0.26 worse than the analyst estimate of $0.60. Revenue for the quarter came in at $241.8 million versus the consensus estimate of $251.78 million.

Management Commentary

"2018 was a year of positive operational execution at Simpson, as we achieved full year net sales of approximately $1.1 billion, an increase of 10% year-over-year, due to increases in both sales volume and average unit prices," commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "Our full year gross profit margin of 44.5% was solid, though lower than our projection of between 45.5% to 46.0%, due to an unexpected sharp decline in revenues during December, which resulted in an increase of factory, material and labor costs as a percentage of net sales in our fourth quarter. Looking ahead, we expect demand to remain relatively stable as demand in January was strong, indicating the December buying patterns may have been postponed due to short term uncertainty."

Mrs. Colonias continued, "Our strong sales for the year, combined with our focus on cost containment initiatives, resulted in a 2018 operating income of $176.2 million, an increase of 28% compared to the prior year period. Net income increased by 40% to $129.5 million, and we produced strong earnings of $2.78 per diluted share, an increase of 43% year-over-year. These results represent meaningful progress towards our key financial targets under the 2020 Plan, which we announced in the third quarter of 2017 with a goal of maximizing operating efficiencies and driving long-term shareholder value. Our team has worked hard to execute against these goals, and we thank them for their dedication and commitment. Today we remain focused on achieving our 2020 financial targets. Our 2018 share repurchases of $111.1 million of our common stock, a record for Simpson, reflect our continued confidence in the strength and outlook for our business."

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

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