The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Simpson Manufacturing met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins increased across the board.
Simpson Manufacturing booked revenue of $130.7 million. The seven analysts polled by S&P Capital IQ looked for revenue of $131.5 million. Sales were 9.3% higher than the prior-year quarter's $119.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.13. The seven earnings estimates compiled by S&P Capital IQ predicted $0.11 per share on the same basis. GAAP EPS were $0.10 for Q4 compared to -$0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.0%, 220 basis points better than the prior-year quarter. Operating margin was 5.5%, 180 basis points better than the prior-year quarter. Net margin was 3.8%, 760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $143.5 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $658.3 million. The average EPS estimate is $1.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 431 members out of 465 rating the stock outperform, and 34 members rating it underperform. Among 187 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 180 give Simpson Manufacturing a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Simpson Manufacturing is hold, with an average price target of $32.42.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Simpson Manufacturing. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.