Simpsons Q2 Earnings Rises, But Misses Estimates

(RTTNews) - California-based constructions company Simpson Manufacturing Co., Inc. (SSD), reported better earnings year-over-year in the third quarter, however, fell short of Street estimates. Simpson reported a net income of $73.78 million or $1.70 earnings per share compared to $67.05 million or $1.54 earnings per share last year. On average, four analysts polled by Thomson Reuters forecast earnings of $1.77 per share for the quarter. The revenue reported by the company also increased 9% to $396.70 million from $364.30 million. The analysts expected revenue of $447.79 million for the quarter. The board of directors of the company announced a cash dividend of $0.25 per share on January 27 to investors on record on January 6. Karen Colonias, president and CEO of the company, said, "During the third quarter, we experienced lighter sales volumes in North America in the distribution channels we serve. We believe our customers are adopting a more cautious stance in regard to their inventory levels given tightening labor and supply chain conditions and the potential impact on the building industry. Sales volumes also reflected an as expected decline year-over-year in our home center channel related to the load-in of our products at Lowe's during the third quarter of 2020 following their return as a home center customer."