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    Simpson Manufacturing Co. (SSD)

    Q1 2024 Earnings Summary

    Reported on Jan 7, 2025 (After Market Close)
    Pre-Earnings Price$185.12Last close (Apr 22, 2024)
    Post-Earnings Price$171.98Open (Apr 23, 2024)
    Price Change
    $-13.14(-7.10%)
    • Strong Volume Growth in North America: Despite market challenges, SSD achieved healthy North American volume growth of 8% in Q1, and executives noted continued strength into Q2.
    • Successful Investments in National Retail Segment Yielding Double-Digit Growth: Investments in sales teams and merchandising efforts have led to double-digit volume growth in the national retail segment, particularly in fastener products.
    • Strategic Investments Positioning for Future Growth: The company is making significant investments in new facilities and equipment, enhancing capacity and efficiency, and maintains its operating margin guidance of 20% to 21.5% for 2024.
    • Operating margin declined to 18.1% from 22.1%, due to higher operating expenses including increased personnel costs, professional fees, and IT spending, which may continue to pressure profitability.
    • Adjusted EBITDA decreased by 14% year-over-year, indicating that profitability is under pressure despite adjustments for depreciation and amortization from significant investments.
    • Increased rebates and pricing impacts led to flat net sales despite an 8% increase in North American volumes; these factors are expected to continue and could pose a headwind to future revenue growth.

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