Investors in Simpson Manufacturing Co., Inc. (NYSE:SSD) had a good week, as its shares rose 2.2% to close at US$154 following the release of its quarterly results. Revenues were US$539m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.85 were also better than expected, beating analyst predictions by 18%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Simpson Manufacturing after the latest results.
Taking into account the latest results, the most recent consensus for Simpson Manufacturing from three analysts is for revenues of US$2.29b in 2025. If met, it would imply a reasonable 2.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.7% to US$8.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.29b and earnings per share (EPS) of US$8.10 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Simpson Manufacturing
The analysts reconfirmed their price target of US$186, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Simpson Manufacturing at US$195 per share, while the most bearish prices it at US$180. This is a very narrow spread of estimates, implying either that Simpson Manufacturing is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Simpson Manufacturing's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Simpson Manufacturing.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Simpson Manufacturing's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$186, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Simpson Manufacturing going out to 2026, and you can see them free on our platform here..
You can also see whether Simpson Manufacturing is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.