Simpson Earnings: What To Look For From SSD

StockStory
27 Apr
Simpson Earnings: What To Look For From SSD

Building products manufacturer Simpson (NYSE:SSD) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

Simpson beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $517.4 million, up 3.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

Is Simpson a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Simpson’s revenue to be flat year on year at $528.5 million, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $1.54 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Simpson has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Simpson’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Masco’s revenues decreased 6.5% year on year, missing analysts’ expectations by 2%, and Insteel reported revenues up 26.1%, topping estimates by 7.2%. Masco traded down 1.7% following the results while Insteel was up 13.9%.

Read our full analysis of Masco’s results here and Insteel’s results here.

Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Simpson’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $185.67 (compared to the current share price of $156.08).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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