Building products manufacturer Simpson (NYSE: SSD) will be reporting earnings this Monday after the bell. Here’s what you need to know.
Simpson beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $631.1 million, up 5.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat 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 3% year on year to $604.9 million, improving from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.34 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 3.6% on average.
Looking at Simpson’s peers in the building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Apogee delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2.1%, and Valmont reported revenues up 2.5%, topping estimates by 1.5%. Apogee traded down 4.5% following the results while Valmont was also down 1.8%.
Read our full analysis of Apogee’s results here and Valmont’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 3.7% on average over the last month. Simpson is up 2.4% during the same time and is heading into earnings with an average analyst price target of $191.67 (compared to the current share price of $175.32).
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