Shares of Simpson Manufacturing Co. (NYSE: SSD) plummeted by 5.19% on October 22, 2024, after the company reported disappointing third-quarter earnings results and lowered its full-year guidance, citing higher costs and the impact of hurricanes on its business.

For the third quarter of 2024, Simpson Manufacturing reported net sales of $587.2 million, up slightly from the prior year. However, gross margin declined to 46.8% from 48.8% a year ago due to changes in product mix, higher factory overhead, and labor costs. The company's operating margin also decreased by approximately 290 basis points to 21.3%, reflecting increased personnel costs and higher professional fees.

The company faced challenges from Hurricanes Helene and Milton, which caused slowdowns in the Southeast region and impacted some customer facilities. As a result, Simpson Manufacturing lowered its forecast for the fourth quarter in that area.

For the full year 2024, the company now expects its operating margin to be in the range of 19% to 19.5%, below previous expectations due to slower market growth. Simpson Manufacturing cited a revised expectation for US housing starts to be down from 2023 levels and lower overall gross margins due to increased costs as key factors behind the guidance reduction.