Simpson Manufacturing Still Expects FY24 Operating Margin Of 20.0%-21.5%
Portfolio Pulse from Benzinga Newsdesk
Simpson Manufacturing has reaffirmed its FY24 operating margin forecast of 20.0%-21.5% and reduced its capital expenditure estimate from $200 million to $185 million. The company anticipates low single-digit growth in U.S. housing starts, but expects European housing starts to be below the prior year.
April 22, 2024 | 8:30 pm
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Simpson Manufacturing has updated its financial outlook for FY24, maintaining its operating margin forecast and reducing capital expenditures, with mixed expectations for housing starts in the U.S. and Europe.
The reaffirmation of the operating margin forecast and the reduction in capital expenditures are positive signals for investors, indicating efficient capital management and confidence in profitability. However, the mixed outlook on housing starts, especially the expected decline in European housing starts, could introduce some caution. Overall, the positive aspects of the financial forecast are likely to outweigh concerns, potentially leading to a short-term positive impact on SSD's stock price.
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