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Sep 30, 2022
Simpson Q3 2022 Earnings Report
Reported strong financial results driven by solid operational execution and strategic initiatives.
Key Takeaways
Simpson Manufacturing Co. announced strong Q3 2022 financial results with a 39.6% increase in net sales year-over-year, reaching $553.7 million. Income from operations increased by 22.1% to $122.8 million, and diluted earnings per share rose by 20.8% to $2.06.
Net sales increased 39.6% year-over-year to $553.7 million.
Income from operations increased 22.1% year-over-year to $122.8 million.
Diluted earnings per share increased 20.8% year-over-year to $2.06.
The company repurchased $28.3 million of its common stock during the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company has updated its 2022 financial outlook based on three quarters of financial information, which includes the acquisition of ETANCO, to reflect its latest expectations regarding demand trends, raw material costs and operating expenses. Based on business trends and conditions as of today, October 24, 2022, the Company's outlook for the full fiscal year ending December 31, 2022 is as follows:
Positive Outlook
- Operating margin is expected to be in the range of 20.0% to 21.0%, in-line with its more recent historical average as the Company has better visibility on raw material costs and expected results from its acquisition of ETANCO.
- The revised outlook includes $16.0 to $18.0 million in expected integration and transaction costs for the acquisition.
- Interest expense on the outstanding $250.0 million Revolving Credit Facility and Term Loans, which had initial borrowings of $450.0 million, is expected to be approximately $9.8 million, including the benefit from interest rate and cross currency swaps mitigating substantially all of the volatility from changes in interest rates.
- The effective tax rate is expected to be in the range of 25.0% to 26.0%.
- Capital expenditures are expected to be in the range of $55.0 million to $65.0 million.
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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