Q2 2024 Earnings Summary
Reported on Jan 7, 2025 (After Market Close)
Pre-Earnings Price$180.66Last close (Jul 22, 2024)
Post-Earnings Price$173.40Open (Jul 23, 2024)
Price Change
$-7.26(-4.02%)
- • Simpson Manufacturing continues to outpace the market, growing revenue and operating profit significantly even in flat housing markets, and aims to outgrow the market by at least 250 basis points going forward.*
- • The company is enhancing its software offerings, including the acquisition of Calculated Structured Designs (CSD), which will enable them to provide a comprehensive solution for the component manufacturing industry and target larger customers.*
- • Simpson Manufacturing is actively investing in growth opportunities, including M&A and capacity expansions, while maintaining flexibility to control costs, positioning them well for future market upturns and continued above-market growth.*
- Revised Guidance Due to Weak Housing Market: Simpson Manufacturing has revised its guidance for U.S. housing starts from previous expectations of low single-digit growth to now being flat to slightly down in 2024, due to a weaker than anticipated market, particularly with housing starts down 7% in the second quarter * *.
- Margin Pressures from Increased Costs: The company anticipates margin pressures due to increased freight and logistics costs, higher warehouse, labor, and overhead expenses. These increased costs may not be offset by potential raw material cost benefits, potentially impacting the gross margin, which is expected to be slightly lower for the full year * *.
- Incomplete Software Offerings Limiting Growth: Simpson acknowledges that its software offerings are still incomplete to service the largest component manufacturers, requiring further development to integrate truss, wall panels, and floor panels into one seamless solution. This limitation may hinder their ability to attract large clients and impact growth in this market segment * *.