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Simpson
🇺🇸 NYSE:SSD
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Sep 30, 2020

Simpson Q3 2020 Earnings Report

Simpson's Q3 2020 financial results were announced, showcasing significant year-over-year growth in net sales, gross margin, and income from operations.

Key Takeaways

Simpson Manufacturing Co. announced strong Q3 2020 results, with net sales increasing by 17.5% year-over-year to $364.3 million. The company's gross margin improved to 47.6%, and income from operations increased by 49.8% to $91.3 million. Diluted earnings per share rose to $1.54, a 58.8% increase year-over-year.

Net sales increased 17.5% year-over-year to $364.3 million.

Gross margin improved to 47.6%, a 3.2% increase year-over-year.

Income from operations increased 49.8% year-over-year to $91.3 million, with an operating margin of 25.1%.

Diluted earnings per share increased 58.8% year-over-year to $1.54.

Total Revenue
$364M
Previous year: $310M
+17.5%
EPS
$1.54
Previous year: $0.97
+58.8%
Gross Profit Margin
47.6%
Previous year: 44.4%
+7.2%
Operating Income Margin
25.1%
Previous year: 19.7%
+27.4%
Gross Profit
$173M
Previous year: $138M
+25.9%
Cash and Equivalents
$311M
Previous year: $194M
+60.5%
Free Cash Flow
$80.1M
Previous year: $86.4M
-7.4%
Total Assets
$1.28B
Previous year: $1.09B
+17.6%

Simpson

Simpson

Simpson Revenue by Geographic Location

Forward Guidance

Simpson Manufacturing updated its full year outlook, primarily reflecting three quarters 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, October 26, the Company's outlook for the full fiscal year ending December 31, 2020 is as follows:

Positive Outlook

  • Net sales are estimated to increase in the range of 9.0% to 10.0% compared to the full year ended December 31, 2019.
  • Gross margin is estimated to be in the range of 45.0% to 46.0%.
  • Operating expenses, as a percentage of net sales, are estimated to be in the range of 25.0% to 26.5%.
  • The effective tax rate is estimated to be in the range of 24.5% to 26.0%, including both federal and state income tax rates.

Challenges Ahead

  • The magnitude and duration of the COVID-19 pandemic and its impact on general economic conditions remains uncertain.
  • Ongoing uncertainties surrounding the impact of COVID-19 on the Company’s business, which may include the economic impact on its operations.
  • Ongoing uncertainties may include impact on raw material costs.
  • Ongoing uncertainties may include impact on consumers.
  • Ongoing uncertainties may include impact on suppliers, vendors, and other factors outside of its control, may have a material adverse impact on the Company’s financial outlook.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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