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Strattec to Report Q4 Earnings: What's in Store for the Stock?

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Key Takeaways

  • Strattec to post Q4 earnings after market close on Aug. 14, with EPS seen at $1.07.
  • Q4 EPS estimate is up 16 cents in 90 days but signals a 55.23% year-over-year drop.
  • Revenue forecast of $143.51M implies 0.32% growth from the prior-year quarter.

Strattec Security Corporation (STRT - Free Report) is slated to release fourth-quarter fiscal 2025 results on Aug. 14, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.07 per share and $143.51 million, respectively.

For the fiscal fourth quarter, the consensus estimate for STRT’s earnings per share has moved up 16 cents in the past 90 days. Its bottom-line estimates imply a decline of 55.23% from the year-ago reported number.

The Zacks Consensus Estimate for revenues suggests year-over-year growth of 0.32%.

STRT surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 195.82%. This is depicted in the graph below:

Highlights

In third-quarter fiscal 2025, Strattec reported quarterly earnings of $1.50 per share, which surpassed the Zacks Consensus Estimate of 95 cents. STRT had reported earnings of 37 cents in the third quarter of fiscal 2024. The company posted revenues of $144 million, which surpassed the Zacks Consensus Estimate of $141 million and rose 2.1% from the year-ago quarter.

Things to Note

In the fiscal third quarter, Strattec’s gross margin rose 560 basis points year over year to 16%, supported by ongoing gains in material and labor cost efficiencies. Adjusted EBITDA reached $12.9 million, or 9% of sales, compared to 4.4% a year earlier. Amid the cost optimization efforts, gross margin and adjusted EBITDA of STRT are expected to have remained elevated and boosted the company’s performance in the to-be-reported quarter.

Around 6% of STRT's total sales, or $30 million, is currently subject to the recent U.S. tariffs. The company estimated that the annualized impact of recently announced U.S. tariffs will be around $9-$12 million before mitigation measures. Tariff-related headwind is likely to have hurt the company’s performance in the fiscal fourth quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for Strattec this time around, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.

Earnings ESP: STRT has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Strattec currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Releases From Auto Space

American Axle & Manufacturing Holdings (AXL - Free Report) reported second-quarter 2025 adjusted earnings of 21 cents per share, beating the Zacks Consensus Estimate of 13 cents. The company recorded earnings of 19 cents per share in the year-ago quarter. AXL generated quarterly revenues of $1.54 billion, which beat the Zacks Consensus Estimate of $1.51 billion. Revenues declined 5.5% on a year-over-year basis.

As of June 30, 2025, American Axle had cash and cash equivalents of $586.5 million, up from $552.9 million as of Dec. 31, 2024. Its net long-term debt was $2.60 billion, up from $2.58 billion as of Dec. 31, 2024.

Standard Motor Products (SMP - Free Report) posted second-quarter 2025 adjusted EPS of $1.29, which surpassed the Zacks Consensus Estimate of 97 cents and rose from 98 cents reported in the prior-year quarter. Total revenues rose to $493.9 million from $389.8 million reported in the second quarter of 2024. The reported figure also beat the Zacks Consensus Estimate of $450 million. 

Gross profit rose to $152.5 million from the year-ago quarter’s $111.4 million. Operating income increased to $46.3 million from $30 million reported in the year-ago quarter. Standard Motor had $58.8 million in cash as of June 30, 2025, compared with $44.4 million as of Dec. 31, 2024. Long-term debt totaled $605.8 million as of June 30, 2025, compared with $535.2 million as of Dec. 31, 2024.

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