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Cooper-Standard (CPS) Q2 Earnings Miss Estimates, Up Y/Y
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Cooper-Standard Holdings Inc. (CPS - Free Report) has reported second-quarter 2018 adjusted earnings per share of $2.74, missing the Zacks Consensus Estimate of $3. However, the bottom-line figure was higher than the year-ago quarter figure of $2.60 per share. This year-over-year rise can be attributed to rise in operating efficiency and decline in selling, general, administrative and engineering (SGA&E) expenses, which were partly offset by customer price reductions, unfavorable volume and mix, and high material costs.
Revenues increased 2.1% year over year to $928.3 million. The rise in sales is primarily owing to favorable exchange rate fluctuations, along with favorable volume and mix, and net of customer price reductions.
During the reported quarter, adjusted net income was $50.3 million, up from the prior-year quarter figure of $49 million. The company launched 51 customer programs and grabbed net new business awards, totaling $144 million. Adjusted EBITDA declined 5.2% to $107.9 million compared with the second quarter of 2017.
Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise
Sales in the North America segment decreased 0.8% to $477.6 million. The year-over-year decline in sales was mainly due to customer price reductions.
Sales in the Europe segment were $279.1 million in the second quarter, up 7.2% year over year. The improvement was mainly due to favorable foreign exchange, and volume and mix, partially offset by customer price reductions.
The Asia Pacific segment reported sales of $148 million in the reported quarter, up 5.1% compared with second-quarter 2017. The year-over-year increase was mainly due to a favorable foreign exchange and incremental sales from acquisitions, partly offset by customer price reductions, and an unfavorable volume and mix.
The company’s South America segment reported sales of $23.5 million during the reported quarter, down 10.3% year over year. The fall was due to the unfavorable foreign exchange.
Financials
Cooper-Standard had $440.2 million of cash and cash equivalents as of Jun 30, 2018, compared with $420.2 million as of Mar 31, 2018. The company had long-term debt of $723 million as of Jun 30, 2018, compared with $723.3 million recorded on Dec 31, 2017.
2018 Outlook
The company anticipates sales of $3.60-$3.70 billion in 2018, up from the prior guidance of $3.55-$3.60 billion. It changed the 2018 adjusted EBITDA margin guidance to 12.7-13.0% from the prior guidance of 12.7-13.3%.
Further, the company expects capital expenditure (as a percent of sales) of 5.7-5.9% in 2018 from the prior guidance of 5.5-5.9%.
Zacks Rank & Key Picks
Cooper-Standard currently carries a Zacks Rank #3 (Hold).
PACCAR has an expected long-term growth rate of 10.8%. Over the past year, shares of the company have moved up 2.1%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 1%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 31.3% over the past year.
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Cooper-Standard (CPS) Q2 Earnings Miss Estimates, Up Y/Y
Cooper-Standard Holdings Inc. (CPS - Free Report) has reported second-quarter 2018 adjusted earnings per share of $2.74, missing the Zacks Consensus Estimate of $3. However, the bottom-line figure was higher than the year-ago quarter figure of $2.60 per share. This year-over-year rise can be attributed to rise in operating efficiency and decline in selling, general, administrative and engineering (SGA&E) expenses, which were partly offset by customer price reductions, unfavorable volume and mix, and high material costs.
Revenues increased 2.1% year over year to $928.3 million. The rise in sales is primarily owing to favorable exchange rate fluctuations, along with favorable volume and mix, and net of customer price reductions.
During the reported quarter, adjusted net income was $50.3 million, up from the prior-year quarter figure of $49 million. The company launched 51 customer programs and grabbed net new business awards, totaling $144 million. Adjusted EBITDA declined 5.2% to $107.9 million compared with the second quarter of 2017.
Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise
Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise | Cooper-Standard Holdings Inc. Quote
Segment Performance
Sales in the North America segment decreased 0.8% to $477.6 million. The year-over-year decline in sales was mainly due to customer price reductions.
Sales in the Europe segment were $279.1 million in the second quarter, up 7.2% year over year. The improvement was mainly due to favorable foreign exchange, and volume and mix, partially offset by customer price reductions.
The Asia Pacific segment reported sales of $148 million in the reported quarter, up 5.1% compared with second-quarter 2017. The year-over-year increase was mainly due to a favorable foreign exchange and incremental sales from acquisitions, partly offset by customer price reductions, and an unfavorable volume and mix.
The company’s South America segment reported sales of $23.5 million during the reported quarter, down 10.3% year over year. The fall was due to the unfavorable foreign exchange.
Financials
Cooper-Standard had $440.2 million of cash and cash equivalents as of Jun 30, 2018, compared with $420.2 million as of Mar 31, 2018. The company had long-term debt of $723 million as of Jun 30, 2018, compared with $723.3 million recorded on Dec 31, 2017.
2018 Outlook
The company anticipates sales of $3.60-$3.70 billion in 2018, up from the prior guidance of $3.55-$3.60 billion. It changed the 2018 adjusted EBITDA margin guidance to 12.7-13.0% from the prior guidance of 12.7-13.3%.
Further, the company expects capital expenditure (as a percent of sales) of 5.7-5.9% in 2018 from the prior guidance of 5.5-5.9%.
Zacks Rank & Key Picks
Cooper-Standard currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are PACCAR Inc. (PCAR - Free Report) , AB Volvo (VLVLY - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While PACCAR sports a Zacks Rank #1 (Strong Buy), both Volvo and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PACCAR has an expected long-term growth rate of 10.8%. Over the past year, shares of the company have moved up 2.1%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 1%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 31.3% over the past year.
Today’s Stocks From Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>