Building products manufacturer Simpson (NYSE:SSD) will be announcing earnings results this Monday after market hours. Here’s what investors should know.
Simpson beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $623.5 million, up 6.2% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.
Is Simpson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Simpson’s revenue to grow 2.6% year on year to $530.7 million, in line with the 3.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 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 Q4 results, giving us a hint as to what we can expect. Griffon delivered year-on-year revenue growth of 2.6%, beating analysts’ expectations by 4.8%, and Advanced Drainage reported flat revenue, topping estimates by 1.1%. Griffon traded up 11.9% following the results while Advanced Drainage was also up 9.4%.
Read our full analysis of Griffon’s results here and Advanced Drainage’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 8.7% on average over the last month. Simpson is up 8.5% during the same time and is heading into earnings with an average analyst price target of $194.75 (compared to the current share price of $194.27).
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