Building products manufacturer Simpson (NYSE: SSD) will be announcing earnings results this Monday after the bell. Here’s what to look for.
Simpson beat analysts’ revenue expectations last quarter, reporting revenues of $539.3 million, up 4.2% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and adjusted operating income estimates.
Is Simpson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Simpson’s revenue to grow 2.5% year on year, in line with the 1.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Simpson has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Simpson’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Masco delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 4.6%, and Zurn Elkay reported revenues up 11.4%, topping estimates by 3.2%. Masco traded up 12.9% following the results while Zurn Elkay was also up 9.5%.
Read our full analysis of Masco’s results here and Zurn Elkay’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 12.6% on average over the last month. Simpson is up 7% during the same time and is heading into earnings with an average analyst price target of $210.20 (compared to the current share price of $180.12).
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