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Simpson Manufacturing Co., Inc. (SSD - Free Report) reported fourth-quarter 2016 earnings of 36 cents per share, a 20% year-over-year improvement from 30 cents per share in the prior-year quarter. Earnings, however, missed the Zacks Consensus Estimate of 40 cents.
Operational Update
Total revenue rose 8% to $200 million from $184.8 million in the year-ago quarter, beating the Zacks Consensus Estimate of $196 million.
Cost of sales went up 3% year over year to $105 million. Gross profit was $95 million, up 14.7% from $82.8 million in the year-earlier quarter. Gross margin expanded by 260 basis points (bps) to 47.4% from the year-ago quarter.
Simpson Manufacturing Company, Inc. Price, Consensus and EPS Surprise
Research and development and engineering expenses increased 7.8% year over year to $12.4 million. Selling expenses climbed to $24 million from $22.5 million in the prior-year quarter. General and administrative expenses went up 22% year over year to $32.4 million. Income from operations improved 16% year over year to $26 million.
Segment Performance
Revenues in the North American segment rose 9% to $172.8 million from $158.4 million in the year-ago quarter, primarily led by increased sales as well as a rise in average net sales unit prices. Segment profit jumped 20% year over year to $24.4 million.
Total revenues for the European segment inched up 1% year over year to $25.3 million, driven by increased unit sales volumes as average net sales unit prices were relatively flat. Europe's net sales were affected by approximately $1.1 million in foreign currency translations, primarily due to the weakening of the British pound against the U.S. dollar. The segment reported a loss of $3.3 million in the quarter, wider than a loss of $1.5 million reported in the prior-year quarter.
Asia/Pacific segment’s total revenues surged 45% to $2.1 million from $1.4 million in the year-ago quarter. The segment reported a profit of $0.88 million in the quarter compared with a loss of $0.326 million in the prior year quarter.
Financial Position
Simpson Manufacturing reported cash and short-term investments of $226.5 million at the end of 2016, compared with $258.8 million at the end of 2014.
2016 Performance
Simpson Manufacturing posted earnings of $1.86 per share for 2016, which surged 34.8% year over year. Earnings missed the Zacks Consensus Estimate $1.89. Revenues for full-year 2016 increased 8% year over year to $860.7 million from $794 million in 2015. Revenues beat the Zacks Consensus Estimate of $857 million.
Share Price Performance
In the last one year, Simpson Manufacturing has underperformed the Zacks classified Building & Construction Products-Miscellaneous sub-industry with respect to price performance. The stock gained around 38.4%, while the industry rose 43.7% over the same time frame.
Zacks Rank & Key Picks
Simpson Manufacturing currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are NCI Building Systems, Inc. , PulteGroup, Inc. (PHM - Free Report) and LSI Industries Inc. (LYTS - Free Report) .
NCI Building Systems has delivered an average positive earnings surprise of 87.26% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PulteGroup also boasts a Zacks Rank #1 and has delivered an average positive earnings surprise of 13.49% for the trailing four quarters. LSI Industries, another Zacks Rank #1 stock, has an average positive earnings surprise of 27.28% for the past four quarters.
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Simpson Manufacturing (SSD) Lags Q4 Earnings, Sales Beat
Simpson Manufacturing Co., Inc. (SSD - Free Report) reported fourth-quarter 2016 earnings of 36 cents per share, a 20% year-over-year improvement from 30 cents per share in the prior-year quarter. Earnings, however, missed the Zacks Consensus Estimate of 40 cents.
Operational Update
Total revenue rose 8% to $200 million from $184.8 million in the year-ago quarter, beating the Zacks Consensus Estimate of $196 million.
Cost of sales went up 3% year over year to $105 million. Gross profit was $95 million, up 14.7% from $82.8 million in the year-earlier quarter. Gross margin expanded by 260 basis points (bps) to 47.4% from the year-ago quarter.
Simpson Manufacturing Company, Inc. Price, Consensus and EPS Surprise
Simpson Manufacturing Company, Inc. Price, Consensus and EPS Surprise | Simpson Manufacturing Company, Inc. Quote
Research and development and engineering expenses increased 7.8% year over year to $12.4 million. Selling expenses climbed to $24 million from $22.5 million in the prior-year quarter. General and administrative expenses went up 22% year over year to $32.4 million. Income from operations improved 16% year over year to $26 million.
Segment Performance
Revenues in the North American segment rose 9% to $172.8 million from $158.4 million in the year-ago quarter, primarily led by increased sales as well as a rise in average net sales unit prices. Segment profit jumped 20% year over year to $24.4 million.
Total revenues for the European segment inched up 1% year over year to $25.3 million, driven by increased unit sales volumes as average net sales unit prices were relatively flat. Europe's net sales were affected by approximately $1.1 million in foreign currency translations, primarily due to the weakening of the British pound against the U.S. dollar. The segment reported a loss of $3.3 million in the quarter, wider than a loss of $1.5 million reported in the prior-year quarter.
Asia/Pacific segment’s total revenues surged 45% to $2.1 million from $1.4 million in the year-ago quarter. The segment reported a profit of $0.88 million in the quarter compared with a loss of $0.326 million in the prior year quarter.
Financial Position
Simpson Manufacturing reported cash and short-term investments of $226.5 million at the end of 2016, compared with $258.8 million at the end of 2014.
2016 Performance
Simpson Manufacturing posted earnings of $1.86 per share for 2016, which surged 34.8% year over year. Earnings missed the Zacks Consensus Estimate $1.89. Revenues for full-year 2016 increased 8% year over year to $860.7 million from $794 million in 2015. Revenues beat the Zacks Consensus Estimate of $857 million.
Share Price Performance
In the last one year, Simpson Manufacturing has underperformed the Zacks classified Building & Construction Products-Miscellaneous sub-industry with respect to price performance. The stock gained around 38.4%, while the industry rose 43.7% over the same time frame.
Zacks Rank & Key Picks
Simpson Manufacturing currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are NCI Building Systems, Inc. , PulteGroup, Inc. (PHM - Free Report) and LSI Industries Inc. (LYTS - Free Report) .
NCI Building Systems has delivered an average positive earnings surprise of 87.26% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PulteGroup also boasts a Zacks Rank #1 and has delivered an average positive earnings surprise of 13.49% for the trailing four quarters. LSI Industries, another Zacks Rank #1 stock, has an average positive earnings surprise of 27.28% for the past four quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>