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Sep 30, 2023
Simpson Q3 2023 Earnings Report
Simpson's financial performance improved, driven by sales growth and margin expansion.
Key Takeaways
Simpson Manufacturing Co. reported a 4.8% increase in net sales and a 14.2% increase in income from operations for the third quarter of 2023. The company's performance was driven by higher volumes in North America and improved gross margins.
Consolidated net sales increased by 4.8% year-over-year to $580.1 million.
Income from operations rose by 14.2% year-over-year to $140.2 million.
Diluted earnings per share increased by 18.0% year-over-year to $2.43.
The company anticipates that its fourth quarter 2023 results will start reflecting some downward pressure, in addition to typical seasonality, compared to the third quarter of 2023.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
The Company has updated its 2023 financial outlook based on three quarters of financial information to reflect its latest expectations regarding demand trends, raw material costs and operating expenses.
Positive Outlook
- Operating margin is now estimated to be in the range of 22.0% to 22.5%.
- The effective tax rate is estimated to be in the range of 25% to 26%, including both federal and state income tax rates and assuming no tax law changes are enacted.
- Capital expenditures are estimated to be approximately $100.0 million depending on a number of various external factors.
- The Company continues to make progress on its efforts to integrate ETANCO into its operations
- The Company continues to make progress on its efforts to realize previously identified offensive and defensive synergies in the years ahead.
Challenges Ahead
- Based on the current interest rate environment and the resultant impact on the housing market, we anticipate that our fourth quarter 2023 results will start reflecting some downward pressure, in addition to typical seasonality, compared to the third quarter of 2023.
- While our operations throughout the Company were mostly down for approximately three days in mid-October due to a cybersecurity incident
- The swift actions of our dedicated team and commitment to our customers led us to resume shipments to clear our backlog within just one week.
- Ongoing integration costs through 2023 and beyond.
- 2023 U.S. housing starts will likely finish below 2022 levels
Revenue & Expenses
Visualization of income flow from segment revenue to net income