Simpson Q2 2020 Earnings Report
Key Takeaways
Simpson Manufacturing Co. Inc. announced strong second-quarter results with a 7.0% increase in net sales to $326.1 million and diluted earnings per share of $1.22, a 38.6% increase year-over-year. The company's performance was driven by higher sales volumes, particularly in North America, and improved gross margins.
Net sales increased by 7.0% year-over-year to $326.1 million.
Gross margin improved to 45.9%, up 1.9% year-over-year.
Income from operations rose by 34.6% year-over-year to $72.2 million.
Diluted earnings per share increased by 38.6% year-over-year to $1.22.
Simpson
Simpson
Simpson Revenue by Geographic Location
Forward Guidance
The Company expects full year net sales and gross margin will improve year-over-year in 2020, subject to circumstances outside of its control related to the COVID-19 pandemic.
Positive Outlook
- Net sales are estimated to increase in the range of 1.5% to 4.0% compared to the full year ended December 31, 2019.
- Gross margin is estimated to be in the range of 43.0% to 45.0%.
- The company believes the solid demand trends experienced in Q2 2020 from the addition of Lowe’s and improved repair and remodel market will continue.
- Emphasis on enhancing operating efficiencies and cost savings.
- Industry leadership position, geographic reach and diverse product offerings, combined with strong balance sheet and liquidity position.
Challenges Ahead
- Ongoing uncertainties surrounding the impact of COVID-19 on Simpson’s business.
- Economic impact on its operations.
- Raw material costs.
- Impact on consumers, suppliers and vendors.
- Other factors outside of its control.
Revenue & Expenses
Visualization of income flow from segment revenue to net income