Simpson Manufacturing beats Q2 sales estimates, reaffirms FY25 guidance

Overview

• Simpson Manufacturing Q2 net sales rise 5.7% yr/yr, beating analyst expectations, per LSEG data

• Net income per diluted share increases 6.9% yr/yr to $2.47

• Co repurchased $35 mln of common stock during the quarter

Outlook

• Simpson Manufacturing reaffirms 2025 guidance

• Company estimates 2025 operating margin between 18.5% and 20.5%

• Simpson Manufacturing sees effective tax rate of 25.5% to 26.5%

• Capital expenditures projected at $140 mln to $160 mln for 2025

Result Drivers

• PRICE INCREASES - North America sales growth driven by recent price increases and acquisitions

• CURRENCY TRANSLATION - European sales benefited from favorable currency translation

• COST MANAGEMENT - Operating margin expansion in Europe due to disciplined cost management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Simpson Manufacturing Co Inc is $182.00, about 9% above its July 25 closing price of $165.66

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn2NLlPca