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Superior Industries (SUP) Q4 Earnings Surpass Estimates
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Superior Industries International Inc.’s (SUP - Free Report) adjusted earnings of 38 cents per share for fourth-quarter 2017 topped the Zacks Consensus Estimate of 24 cents. Including after-tax expense and the impact of U.S. tax reform, net loss for the quarter was $4.6 million or 50 cents per share.
Revenues were $361.8 million in the reported quarter, missing the Zacks Consensus Estimate of $363.8 million. However, the reported figure was higher than $188.3 million recorded in the year-ago quarter.
Wheel unit shipments were 5.4 million compared with 3.1 million in the prior-year quarter. The rise is primarily due to the addition of its European operations, partly offset by a decline in the North American market compared with the prior-year quarter.Value-added sales, i.e., net sales minus pass-through charges for aluminum, increased to $203.5 million compared with $106.4 million in fourth-quarter 2016.
Superior Industries International, Inc. Price, Consensus and EPS Surprise
Gross profit rose to $39.7 million from $18 million in the year-ago quarter. The increase was due to the addition of European operations, partly offset by non-recurring effects of purchase accounting adjustments of $1.3 million related to the buyout of UNIWHEELS and ongoing amortization of intangibles related to the acquisition.
Selling, general and administrative expenses jumped to $25.9 million in fourth-quarter 2017 from $6.9 million in the prior-year quarter, resulting from the addition of European operations, costs of around $7.2 million linked with the acquisition and integration of UNIWHEELS and compensation expenses in North America.
Full-Year 2017 Results
Superior Industries reported loss of $1.01 per share in 2017, down from earnings per share of $1.62 in 2016.
In 2017, revenues increased to $1,108.1 million from $732.7 million in 2016.
Financial Details
In fourth-quarter 2017, Superior Industries’ net cash, generated from operating activities, was $46.5 million compared with $39.2 million in the year-ago period. The increase was primarily due to the rise in working capital and the addition of European operations, which were partly offset by expenses related to the acquisition.
Outlook
For 2018, Superior Industries reaffirmed its net sales, value-added sales, adjusted EBITDA, capital expenditures and working capital.
The company expects net sales for 2018 to be $1.45-$1.5 billion, driven by 21.25-21.6 million units of shipment. Superior Industries expects value-added sales in the band of $800-$835 million. Adjusted EBITDA is expected to be $185-$200 million. The company projects capital expenditure to be around $95 million.
Price Performance
In the last three months, shares of Superior Industries have outperformed the industry it belongs to. During the period, the company’s stock gained 0.6% against the industry’s decline of 0.7%.
LKQ Corp has an expected long-term growth rate of 16%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 5.9% upward over the last 30 days.
PACCAR has an expected long-term growth rate of 9.8%.The stock has seen the Zacks Consensus Estimate for annual earnings being revised 0.8% upward over the last 30 days.
Tenneco has an expected long-term growth rate of 13.5%.The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 1.2% upward over the last 30 days.
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Superior Industries (SUP) Q4 Earnings Surpass Estimates
Superior Industries International Inc.’s (SUP - Free Report) adjusted earnings of 38 cents per share for fourth-quarter 2017 topped the Zacks Consensus Estimate of 24 cents. Including after-tax expense and the impact of U.S. tax reform, net loss for the quarter was $4.6 million or 50 cents per share.
Revenues were $361.8 million in the reported quarter, missing the Zacks Consensus Estimate of $363.8 million. However, the reported figure was higher than $188.3 million recorded in the year-ago quarter.
Wheel unit shipments were 5.4 million compared with 3.1 million in the prior-year quarter. The rise is primarily due to the addition of its European operations, partly offset by a decline in the North American market compared with the prior-year quarter.Value-added sales, i.e., net sales minus pass-through charges for aluminum, increased to $203.5 million compared with $106.4 million in fourth-quarter 2016.
Superior Industries International, Inc. Price, Consensus and EPS Surprise
Superior Industries International, Inc. Price, Consensus and EPS Surprise | Superior Industries International, Inc. Quote
Gross profit rose to $39.7 million from $18 million in the year-ago quarter. The increase was due to the addition of European operations, partly offset by non-recurring effects of purchase accounting adjustments of $1.3 million related to the buyout of UNIWHEELS and ongoing amortization of intangibles related to the acquisition.
Selling, general and administrative expenses jumped to $25.9 million in fourth-quarter 2017 from $6.9 million in the prior-year quarter, resulting from the addition of European operations, costs of around $7.2 million linked with the acquisition and integration of UNIWHEELS and compensation expenses in North America.
Full-Year 2017 Results
Superior Industries reported loss of $1.01 per share in 2017, down from earnings per share of $1.62 in 2016.
In 2017, revenues increased to $1,108.1 million from $732.7 million in 2016.
Financial Details
In fourth-quarter 2017, Superior Industries’ net cash, generated from operating activities, was $46.5 million compared with $39.2 million in the year-ago period. The increase was primarily due to the rise in working capital and the addition of European operations, which were partly offset by expenses related to the acquisition.
Outlook
For 2018, Superior Industries reaffirmed its net sales, value-added sales, adjusted EBITDA, capital expenditures and working capital.
The company expects net sales for 2018 to be $1.45-$1.5 billion, driven by 21.25-21.6 million units of shipment. Superior Industries expects value-added sales in the band of $800-$835 million. Adjusted EBITDA is expected to be $185-$200 million. The company projects capital expenditure to be around $95 million.
Price Performance
In the last three months, shares of Superior Industries have outperformed the industry it belongs to. During the period, the company’s stock gained 0.6% against the industry’s decline of 0.7%.
Zacks Rank & Key Picks
Superior Industries has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are LKQ Corporation (LKQ - Free Report) , PACCAR Inc. (PCAR - Free Report) and Tenneco Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LKQ Corp has an expected long-term growth rate of 16%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 5.9% upward over the last 30 days.
PACCAR has an expected long-term growth rate of 9.8%.The stock has seen the Zacks Consensus Estimate for annual earnings being revised 0.8% upward over the last 30 days.
Tenneco has an expected long-term growth rate of 13.5%.The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 1.2% upward over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early
See Zacks' 3 Best Stocks to Play This Trend >>