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What to Expect From Simpson Manufacturing's (SSD) Q1 Earnings?
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Simpson Manufacturing Co., Inc. (SSD - Free Report) is slated to report first-quarter 2024 results on Apr 22, after the closing bell.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.3% and decreased 5.2% year over year. Net sales of $501.7 million increased 5.5% year over year.
The company’s earnings topped analysts’ expectations in five of the trailing six quarters.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Simpson Manufacturing’s first-quarter earnings is pegged at $1.84 per share, suggesting a decline of 10.2% from the year-ago quarter’s figure of $2.05.
Simpson Manufacturing Company, Inc. Price and EPS Surprise
Earnings estimates for the said period have remained stable in the last two months.
Factors to Note
Simpson Manufacturing is expected to have registered tepid earnings in the first quarter due to higher operating costs and expenses. The company generates costs related to research and development, acquisitions and marketing and advertising, which impacts its bottom line. Foreign currency translation and lower prices are additional concerns. These are expected to have compressed margins in the to-be-reported quarter.
The company anticipates tougher economic conditions and lower construction activity to persist in the first quarter.
Nonetheless, this leading manufacturer of wood construction products has been witnessing strong growth across the end markets and product lines. Also, lower raw material and labor costs are added benefits that might have aided its top line in the first quarter.
Acquisitions have been an integral part of Simpson Manufacturing, which ultimately helps the company boost sales. Its buyout of ETANCO and other companies is expected to have aided European operations in the to-be-reported quarter. The company is also expanding its wood product and concrete product lines by acquiring intellectual property.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for SSD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Currently, Simpson Manufacturing has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
WLDN’s earnings topped the consensus mark in three of the last four quarters and met on one occasion, the average being 886.3%. Earnings for the to-be-reported quarter are expected to decline 40.6% year over year.
Dream Finders Homes, Inc. (DFH - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #1.
DFH’s earnings topped the consensus mark in the last four quarters, the average being 144.9%. Earnings for the to-be-reported quarter are expected to rise 55.6% year over year.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 53.9%. Earnings for the to-be-reported quarter are expected to decline 19.7% year over year.
Image: Bigstock
What to Expect From Simpson Manufacturing's (SSD) Q1 Earnings?
Simpson Manufacturing Co., Inc. (SSD - Free Report) is slated to report first-quarter 2024 results on Apr 22, after the closing bell.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.3% and decreased 5.2% year over year. Net sales of $501.7 million increased 5.5% year over year.
The company’s earnings topped analysts’ expectations in five of the trailing six quarters.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Simpson Manufacturing’s first-quarter earnings is pegged at $1.84 per share, suggesting a decline of 10.2% from the year-ago quarter’s figure of $2.05.
Simpson Manufacturing Company, Inc. Price and EPS Surprise
Simpson Manufacturing Company, Inc. price-eps-surprise | Simpson Manufacturing Company, Inc. Quote
Earnings estimates for the said period have remained stable in the last two months.
Factors to Note
Simpson Manufacturing is expected to have registered tepid earnings in the first quarter due to higher operating costs and expenses. The company generates costs related to research and development, acquisitions and marketing and advertising, which impacts its bottom line. Foreign currency translation and lower prices are additional concerns. These are expected to have compressed margins in the to-be-reported quarter.
The company anticipates tougher economic conditions and lower construction activity to persist in the first quarter.
Nonetheless, this leading manufacturer of wood construction products has been witnessing strong growth across the end markets and product lines. Also, lower raw material and labor costs are added benefits that might have aided its top line in the first quarter.
Acquisitions have been an integral part of Simpson Manufacturing, which ultimately helps the company boost sales. Its buyout of ETANCO and other companies is expected to have aided European operations in the to-be-reported quarter. The company is also expanding its wood product and concrete product lines by acquiring intellectual property.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for SSD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Currently, Simpson Manufacturing has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Willdan Group, Inc. (WLDN - Free Report) has an Earnings ESP of +47.37% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
WLDN’s earnings topped the consensus mark in three of the last four quarters and met on one occasion, the average being 886.3%. Earnings for the to-be-reported quarter are expected to decline 40.6% year over year.
Dream Finders Homes, Inc. (DFH - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #1.
DFH’s earnings topped the consensus mark in the last four quarters, the average being 144.9%. Earnings for the to-be-reported quarter are expected to rise 55.6% year over year.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 53.9%. Earnings for the to-be-reported quarter are expected to decline 19.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.