Simpson Manufacturing Co., Inc. SSD is slated to report third-quarter 2023 results on Oct 23, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 17.4% and increased 15.7% year over year. Net sales of $597.6 million also inched up 0.7% year over year. Higher volumes in the North America unit, notably in the building technology and national retail end-use markets, were offset by tepid volumes in Europe.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Simpson Manufacturing’s third-quarter earnings is pegged at $2.25 per share, suggesting growth of 9.2% from the year-ago quarter’s figure of $2.06.
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 strong earnings in the third quarter on the back of improved North America volume and lower raw material costs and expenses.
Acquisitions have been an integral part of Simpson Manufacturing. The buyout of FIXCO Invest S.A.S. (together with its subsidiaries, ETANCO) is expected to boost European operations sales in the to-be-reported quarter. The company is also expanding its wood product and concrete product lines by acquiring intellectual property.
However, the company generates costs related to research and development, acquisitions and marketing and advertising, which may impact its bottom line. Foreign currency translation is also concerning, as the company’s business in Europe is experiencing the same. These are expected to compress margins in the yet-to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t 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 a Zacks Rank #3 and an Earnings ESP of 0.00%. 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.
KBR, Inc. KBR has an Earnings ESP of +6.36% and a Zacks Rank #2.
KBR’s earnings topped the consensus mark in all the last four quarters, the average being 10.8%. Earnings for the to-be-reported quarter are expected to increase 12.3% year over year.
Construction Partners, Inc. ROAD has an Earnings ESP of +2.91% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ROAD’s earnings topped the consensus mark in three of the last four quarters, the average being 10.6%. Earnings for the to-be-reported quarter are expected to rise 108% year over year.
Dycom Industries, Inc. DY has an Earnings ESP of +1.24% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in all the last four quarters, the average being 147.4%. Earnings for the to-be-reported quarter are expected to grow 4.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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