Simpson Manufacturing Co., Inc. Reports Third Quarter 2024 Financial Results
Simpson Manufacturing Co., Inc. (NYSE: SSD), a leader in engineered structural connectors and building solutions, announced its financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Year-over-Year Change | Wall Street Consensus Estimates |
|---|---|---|---|
| Total Revenue | $587.2 million | +1.2% | $591.07 million |
| Earnings per Share (EPS) | $2.21 | Not Provided | $2.40 |
The financial performance indicates modest revenue growth compared to the same period last year. However, the earnings per share fell short of analysts’ expectations, suggesting challenges in maintaining profitability amid market pressures.
Revenue Performance Across Major Segments
| Segment | Q3 2024 Revenue | Year-over-Year Change |
|---|---|---|
| North America | $461.4 million | +1.0% |
| Europe | $121.2 million | +1.8% |
In North America, the segment saw a slight uptick in sales due to favorable sales mix and acquisitions, despite flat volumes. Meanwhile, the Europe segment experienced modest growth, driven by increased sales volumes, albeit offset by price reductions in certain regions.
Key Developments and Operational Highlights
- Acquired Monet DeSauw Inc. and Callaway Properties, LLC for $48.5 million.
- Acquired QuickFrames USA, enhancing capabilities in pre-engineered structural support systems.
Management Commentary
CEO Mike Olosky stated, “Our third quarter net sales were up modestly year-over-year despite pressure in the U.S. and European housing markets. We witnessed strength in national retail and OEM markets, counterbalancing weaknesses in residential and commercial sectors. Looking ahead, we are aligning costs with market conditions to improve profitability and anticipate changes in housing starts across North America and Europe.”
Forward Guidance
Simpson Manufacturing has revised its 2024 financial outlook due to reduced housing start expectations. The company now projects U.S. housing starts to decline in the low single-digit range from 2023, with growth anticipated in 2025.
Stock Price Movement
Following the earnings release, the company's stock experienced a 2.07% decline, reflecting investor concerns over the earnings miss and the updated guidance.
Overall, Simpson Manufacturing continues to navigate challenging market conditions with strategic acquisitions and cost alignment initiatives, positioning itself for future growth despite near-term market pressures.
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