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Building products manufacturer Simpson (NYSE:SSD) will be reporting results tomorrow after market close. Here’s what investors should know.
Simpson met analysts’ revenue expectations last quarter, reporting revenues of $587.2 million, up 1.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and 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 decline 1.1% year on year to $496 million, a reversal from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 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 four times over the last two years.
Looking at Simpson’s peers in the building products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Griffon’s revenues decreased 1.7% year on year, missing analysts’ expectations by 0.8%, and Fortune Brands reported a revenue decline of 4.9%, falling short of estimates by 3.5%. Griffon traded up 8.8% following the results while Fortune Brands was down 1.4%.
Read our full analysis of Griffon’s results here and Fortune Brands’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 2% on average over the last month. Simpson is up 3.2% during the same time and is heading into earnings with an average analyst price target of $190.33 (compared to the current share price of $165.42).
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