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Simpson Manufacturing (SSD) at 52-Week High on Strong Q1
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Shares of manufacturer of building construction products Simpson Manufacturing Co., Inc. (SSD - Free Report) hit a new 52-week high of $40.00 on Jun 8, before closing the trading session a tad lower at $39.89.
In fact, the stock has been rising steadily ever since the company reported its first-quarter 2016 results on Apr 21, 2016. Simpson Manufacturing has delivered a year-to-date return of 15.81%. The company has a market capitalization of $1.93 billion. Average volume of shares traded over the last 3 months is approximately 143K.
Growth Drivers
Simpson Manufacturing’s earnings per share surged 70% year over year to 34 cents for the first quarter of 2016, from 20 cents reported in the year-ago period. Net sales increased 13% to $199.5 million from $176.5 million, as net sales increased in both the North America and Europe segments. The 16 year-over-year upside in North America segment was driven by improvement in housing starts and increased construction activity. Sales in Europe grew on the back of volume increases and a milder winter.
Simpson Manufacturing is trying to cut its R&D, engineering, selling and administration expenses as a percent of sales. It stood at 33% in the first quarter compared to 34.7% in the prior-year quarter. Going ahead, the company plans to continue monitoring operations in an attempt to reduce operating expenses, which will boost margins.
The company estimates that its full-year 2016 gross margin will be between approximately 46% and 47%.
Simpson Manufacturing also remains focused on its overall growth strategy of pursuing improvements and acquisitions. The company is currently looking for synergistic buyout targets, primarily in the fasteners and concrete repair space in North America and Europe. Capital expenditure in 2016 is expected in the $50 million range.
Simpson Manufacturing has sound financial strength and looks forward to capturing opportunities in the building products range, where it can benefit from its expertise in engineering, testing, manufacturing and distribution, to drive business growth. Also, the company continues to focus on shareholder returns. It intends to use future share repurchase authorizations to provide dividend hikes.
Stocks to Consider
Simpson Manufacturing currently sports a Zacks Rank #1 (Strong Buy). Some other Zacks Rank #1 stocks in the sector include Installed Building Products, Inc. (IBP - Free Report) , TopBuild Corp. (BLD - Free Report) and USG Corporation (USG - Free Report) .
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Simpson Manufacturing (SSD) at 52-Week High on Strong Q1
Shares of manufacturer of building construction products Simpson Manufacturing Co., Inc. (SSD - Free Report) hit a new 52-week high of $40.00 on Jun 8, before closing the trading session a tad lower at $39.89.
In fact, the stock has been rising steadily ever since the company reported its first-quarter 2016 results on Apr 21, 2016. Simpson Manufacturing has delivered a year-to-date return of 15.81%. The company has a market capitalization of $1.93 billion. Average volume of shares traded over the last 3 months is approximately 143K.
Growth Drivers
Simpson Manufacturing’s earnings per share surged 70% year over year to 34 cents for the first quarter of 2016, from 20 cents reported in the year-ago period. Net sales increased 13% to $199.5 million from $176.5 million, as net sales increased in both the North America and Europe segments. The 16 year-over-year upside in North America segment was driven by improvement in housing starts and increased construction activity. Sales in Europe grew on the back of volume increases and a milder winter.
Simpson Manufacturing is trying to cut its R&D, engineering, selling and administration expenses as a percent of sales. It stood at 33% in the first quarter compared to 34.7% in the prior-year quarter. Going ahead, the company plans to continue monitoring operations in an attempt to reduce operating expenses, which will boost margins.
The company estimates that its full-year 2016 gross margin will be between approximately 46% and 47%.
Simpson Manufacturing also remains focused on its overall growth strategy of pursuing improvements and acquisitions. The company is currently looking for synergistic buyout targets, primarily in the fasteners and concrete repair space in North America and Europe. Capital expenditure in 2016 is expected in the $50 million range.
Simpson Manufacturing has sound financial strength and looks forward to capturing opportunities in the building products range, where it can benefit from its expertise in engineering, testing, manufacturing and distribution, to drive business growth. Also, the company continues to focus on shareholder returns. It intends to use future share repurchase authorizations to provide dividend hikes.
Stocks to Consider
Simpson Manufacturing currently sports a Zacks Rank #1 (Strong Buy). Some other Zacks Rank #1 stocks in the sector include Installed Building Products, Inc. (IBP - Free Report) , TopBuild Corp. (BLD - Free Report) and USG Corporation (USG - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>