Simpson Manufacturing Co., Inc.
) gained 9% a day after reporting upbeat third-quarter 2013
earnings on Oct 24. Results improved 52% to 41 cents per share
from 27 cents in the year-earlier quarter and were ahead of the
Zacks Consensus Estimate of 33 cents.
Total revenue increased 13.8% to $195.9 million from $172.1
million in the year-ago quarter, surpassing the Zacks Consensus
Estimate of $187 million. The rise was primarily attributable to
improved North American sales, from increased homebuilding
activities, partly offset by reduced home center sales and lower
Cost of sales increased 9.7% year over year to $106 million.
Gross profit was $90.2 million, up 19% from $75.7 million in the
year-ago quarter. Consequently, gross margin expanded 200 basis
points (bps) to 46% compared from 44% in the prior-year quarter.
Research and development and engineering expenses increased 3.5%
year over year to $9.2 million. Selling expenses declined 1.5% to
$20.6 million from $20.9 million in the prior-year quarter.
General and administrative expenses increased 20.7% year over
year to $28.8 million.
Income from operations increased 40% year over year to $30.9
million. Consequently, the operating margin grew 300 bps to 16%.
Revenues in the
segment grew 15% to $157.3 million from $137 million in the
year-ago quarter. The growth was led by increased sales in the
U.S., despite the softness in home center business and price
reductions. Segment gross profit rose 16% year over year to $75.4
Total revenue for the
segment went up 6% year over year to $34 million, buoyed by
improved economic conditions and favorable currency translations,
partially offset by price reductions. Gross profit increased 38%
to $13.7 million from $9.9 million in the prior-year quarter.
segment's total revenue increased 57% to $4.5 million from $2.8
million in the year-ago quarter. Segment gross profit almost
doubled to $0.9 million.
Cash and short-term investments amounted to $215.7 million as of
Sep 30, 2013, against $187.4 million as of Sep 30, 2012. The
company has no debt on its balance sheet.
For 2013, Simpson revised its gross margin outlook from the range
of 42-43% to 43-44%. The company lowered its capital expenditure
guidance from $29-$30 million to around $22-$24 million.
Depreciation and amortization expense budget for the full year
remains unchanged at $27-$28 million.
Simpson expects to benefit from its ongoing investments in
strategic initiatives, which include an expanded offering of
concrete and reinforcing products and systems, in specialty
chemicals and software.
Pleasanton, CA-based Simpson is a leading manufacturer of wood
construction products, which include connectors, truss plates,
fastening systems, fasteners and shearwalls. The company, through
its subsidiary, Simpson Strong-Tie Company Inc., designs and
engineers concrete construction products comprising adhesives,
specialty chemicals, mechanical anchors and powder actuated
Simpson currently has a Zacks Rank #3 (Hold).
) belongs to the building and construction industry and holds a
Zacks Rank #2 (Buy).
Armstrong World Industries, Inc.
CaesarStone Sdot-Yam Ltd.
) are yet to announce their third-quarter results.
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SIMPSON MFG INC (SSD): Free Stock Analysis
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