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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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