- Simpson’s net sales for the second quarter were $631.1 million, exceeding estimates by 5.3%.
- Year-over-year sales increased by 5.7% with the previous year figure being $31.8 million less.
- Earnings per share (EPS) stood at $2.47, higher than both the previous year and the market’s expectations.
- Gross margin remained steady at 46.7%, mildly missing the anticipated 46.9%.
- The company confirmed its commitment to its 2025 financial outlook.
- In North America, sales grew by 6.4%, partly aided by a $9.0 million boost from acquisitions made in 2024.
- A focus on sustainable returns is highlighted by the company’s goal to return at least 35% of free cash flow to stockholders.
- Analyst ratings on Simpson’s stock include 2 buys, 1 hold, and 0 sells.
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Simpson Manufacturing Co, Inc on Smartkarma
Independent analysts on Smartkarma are buzzing about Simpson Manufacturing Co, Inc. Analysts at Baptista Research are optimistic about the company’s new growth strategy, lauding its innovative products and expanded market reach. In their report titled “Simpson Manufacturing Reinvents Growth Strategy With Cutting-Edge Product Innovation & Market Expansion!“, they highlight the company’s stable performance in the first quarter of 2025. Despite macroeconomic uncertainties, Simpson Manufacturing saw a 1.6% increase in net sales to $538.9 million, driven by a 3.4% growth in North American sales.
However, in another report titled “Simpson Manufacturing Co.: These Are The 5 Biggest Hindrances In Its Path For Growth In 2025 & Beyond!“, Baptista Research also acknowledges challenges faced by Simpson Manufacturing. The company’s financial performance in fiscal year 2024 showed modest growth to $2.23 billion, with North American sales reaching $1.74 billion. Analysts pointed out obstacles in the housing markets of the U.S. and Europe, impacting the company’s growth prospects. Despite hurdles, Simpson Manufacturing continues to navigate a competitive landscape with strategic acquisitions and sales volume enhancements.
A look at Simpson Manufacturing Co, Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores, Simpson Manufacturing Co, Inc is positioned well for the long-term. With a Momentum score of 4, the company is showing strong positive price trends that may continue in the future. Additionally, the company has scored a solid 3 in each of the categories of Value, Growth, and Resilience, indicating a balanced performance across these key factors. However, the Dividend score of 2 suggests that the company may have room for improvement in terms of dividend payouts.
Simpson Manufacturing Co, Inc, known for its subsidiaries Simpson Strong-Tie Company Inc. and Simpson Dura-Vent Company Inc., specializes in designing and manufacturing connectors, shear walls, and venting systems. With a mix of moderate to high scores across various factors, the company appears to be in a good position for steady growth and resilience in the market, supported by its innovative product offerings and engineering expertise.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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