Superior Industries International Inc.’s (SUP - Free Report) adjusted earnings of 15 cents per share for first-quarter 2018 topped the Zacks Consensus Estimate of 4 cents. Including the impact of acquisition-related items, net income was $10.3 million or 7 cents per share.
Revenues were $386.4 million in the reported quarter, beating the Zacks Consensus Estimate of $356.2 million. Also, the reported figure was higher than $174.2 million recorded in the year-ago quarter.
During the quarter under review, the company reported record wheel-unit shipments of 5.5 million compared with 2.8 million in the prior-year quarter. The rise is primarily due to the addition of its European operations and higher unit shipments in North America. Value-added sales, i.e. net sales minus pass-through charges for aluminum, increased to $207.4 million compared with $95.5 million in first-quarter 2017.
Gross profit rose to $50 million from $19.2 million in the year-ago quarter. The increase was due to strong sales performance, enhanced operational efficiency in North America and the addition of European operations.
Selling, general and administrative expenses jumped to $22.4 million in first-quarter 2018 from $15.3 million in the prior-year quarter, resulting mainly due to the addition of Superior’s European operations.
Financial Details
In first-quarter 2018, Superior Industries’ net cash, provided by the operating activities, was $14.4 million compared with $1.6 million net cash used in the year-ago period.
Outlook
For 2018, Superior Industries reaffirmed its net sales, value-added sales, adjusted EBITDA, capital expenditures and working capital provided on Jan 17, 2018.
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 of $800-$835 million. Adjusted EBITDA is expected to be $185-$200 million. The company projects capital expenditure to be around $95 million.
Zacks Rank & Key Picks
Superior Industries currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Gentex Corporation (GNTX - Free Report) and Ferrari N.V. (RACE - Free Report) . Oshkosh sports a Zacks Rank #1 (Strong Buy) while Gentex and Ferrari carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh has expected long-term growth rate of 18.3%. Shares of the company have risen 9.5% over the past year.
Gentex has expected long-term growth rate of 9.7%. In a year’s time, shares of the company have gained 14.1%.
Ferrari has expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 61.4%.
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Superior Industries International Inc.’s (SUP - Free Report) adjusted earnings of 15 cents per share for first-quarter 2018 topped the Zacks Consensus Estimate of 4 cents. Including the impact of acquisition-related items, net income was $10.3 million or 7 cents per share.
Revenues were $386.4 million in the reported quarter, beating the Zacks Consensus Estimate of $356.2 million. Also, the reported figure was higher than $174.2 million recorded in the year-ago quarter.
During the quarter under review, the company reported record wheel-unit shipments of 5.5 million compared with 2.8 million in the prior-year quarter. The rise is primarily due to the addition of its European operations and higher unit shipments in North America. Value-added sales, i.e. net sales minus pass-through charges for aluminum, increased to $207.4 million compared with $95.5 million in first-quarter 2017.
Gross profit rose to $50 million from $19.2 million in the year-ago quarter. The increase was due to strong sales performance, enhanced operational efficiency in North America and the addition of European operations.
Selling, general and administrative expenses jumped to $22.4 million in first-quarter 2018 from $15.3 million in the prior-year quarter, resulting mainly due to the addition of Superior’s European operations.
Financial Details
In first-quarter 2018, Superior Industries’ net cash, provided by the operating activities, was $14.4 million compared with $1.6 million net cash used in the year-ago period.
Outlook
For 2018, Superior Industries reaffirmed its net sales, value-added sales, adjusted EBITDA, capital expenditures and working capital provided on Jan 17, 2018.
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 of $800-$835 million. Adjusted EBITDA is expected to be $185-$200 million. The company projects capital expenditure to be around $95 million.
Zacks Rank & Key Picks
Superior Industries currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Gentex Corporation (GNTX - Free Report) and Ferrari N.V. (RACE - Free Report) . Oshkosh sports a Zacks Rank #1 (Strong Buy) while Gentex and Ferrari carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh has expected long-term growth rate of 18.3%. Shares of the company have risen 9.5% over the past year.
Gentex has expected long-term growth rate of 9.7%. In a year’s time, shares of the company have gained 14.1%.
Ferrari has expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 61.4%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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