Building products manufacturer Simpson (NYSE: SSD) will be reporting results this Monday after market close. Here’s what to expect.
Simpson beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $538.9 million, up 1.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
Is Simpson a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Simpson’s revenue to be flat year on year at $599.4 million, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $2.26 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Simpson’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 2.5%, and Insteel reported revenues up 23.4%, topping estimates by 2.2%. Lennox traded up 7.2% following the results while Insteel was down 5.8%.
Read our full analysis of Lennox’s results here and Insteel’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 6.7% on average over the last month. Simpson is up 5.4% during the same time and is heading into earnings with an average analyst price target of $185.67 (compared to the current share price of $165.66).
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