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Sep 30, 2024
Simpson Q3 2024 Earnings Report
Simpson's Q3 2024 financial results were announced, with net sales showing a slight increase year-over-year.
Key Takeaways
Simpson Manufacturing Co., Inc. reported a modest increase in net sales for Q3 2024, despite pressures in the housing markets of the U.S. and Europe. While sales in North America were relatively flat, Europe saw a modest increase due to new customer wins and product applications. However, overall profitability remained below expectations, prompting the company to adjust costs to align with market conditions.
Net sales increased by 1.2% year-over-year, reaching $587.2 million.
Operating income margin was 21.3%, with an income from operations of $124.9 million.
Net income per diluted share was reported at $2.21.
The full-year 2024 outlook was revised based on reduced housing start expectations.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company has updated its 2024 financial outlook based on three quarters of financial information to reflect its latest expectations regarding demand trends, cost of sales, and operating expenses.
Positive Outlook
- Operating margin is estimated to be in the range of 19.0% to 19.5%.
- The effective tax rate is estimated to be in the range of 25.3% to 25.8%, including both federal and state income tax rates as well as international income tax rates, and assuming no tax law changes are enacted.
- Capital expenditures are estimated to be in the range of $175.0 million to $185.0 million.
- Capital expenditures includes $90.0 million to $100.0 million for the Columbus, Ohio facility expansion.
- Capital expenditures includes the new Gallatin, Tennessee fastener facility construction with the remaining spend carrying over into 2025.
Challenges Ahead
- U.S. housing starts will be down from the prior year.
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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