NEW YORK - Simpson Manufacturing Co., Inc. (NYSE:SSD) reported third-quarter earnings and revenue that fell short of analyst estimates, sending shares down 5% in after-hours trading on Monday.
The maker of wood construction products posted adjusted earnings per share of $2.21, missing the consensus forecast of $2.40. Revenue came in at $587.2 million, below expectations of $591.07 million.
Net sales increased 1.2% YoY to $587.2 million, while income from operations decreased 11% to $124.9 million. The company's operating margin contracted to 21.3% from 24.2% in the year-ago quarter.
"Our third quarter net sales were up modestly year-over-year despite the housing markets in both the U.S. and Europe remaining under pressure," said Mike Olosky, President and CEO of Simpson Manufacturing. "Even though our overall profitability is good, it is below our expectations and we are working to align costs with market conditions to improve profitability."
The company revised its full-year 2024 outlook based on reduced housing start expectations. Simpson now anticipates U.S. housing starts to decline in the low single-digit range from 2023.
For 2024, Simpson projects an operating margin between 19.0% and 19.5%, down from previous estimates. The company also expects capital expenditures of $175 million to $185 million.
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