Q4 2023 Earnings Summary
Reported on Jan 7, 2025 (After Market Close)
Pre-Earnings Price$183.75Last close (Feb 5, 2024)
Post-Earnings Price$187.54Open (Feb 6, 2024)
Price Change
$3.79(+2.06%)
- Simpson Manufacturing expects to outperform the housing market by growing above market rates, targeting to exceed historical averages of 250 basis points above U.S. housing starts.
- Strategic investments in technology, product development, and sales force are expected to drive future growth and market share gains, including launching a record number of new products in 2023.
- Shifting from two-step distribution to direct distribution channels is expected to boost market share and improve margins over time by enhancing customer relationships and offering complete product lines, supported by investment in warehouses to improve service levels.
- Simpson Manufacturing expects a pullback in gross margins for 2024 due to increased warehousing costs, higher labor expenses, and depreciation from new equipment investments.
- The company's SG&A expenses are rising significantly, driven by higher personnel costs, professional fees, and variable compensation tied to growth initiatives, which may pressure operating margins.
- Simpson faces limited visibility in its European operations, particularly with the ETANCO acquisition, reporting flat performance in a negative market and acknowledging a lack of backlog visibility.
Research analysts covering Simpson Manufacturing Co..