We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Strattec Gears Up to Report Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Key Takeaways
Strattec to report Q3 FY26 on May 7; EPS seen at $1.14 and revenues $140.7M, both down year over year.
STRT profitability gains stem from restructuring savings, cost control and stronger operating cash flow.
Strattec expects H2 sales down 3-4% on weaker U.S. auto output and pricing impacts.
Strattec Security Corporation (STRT - Free Report) is slated to release third-quarter fiscal 2026 results on May 7, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s EPS and revenues is pegged at $1.14 per share and $140.7 million, respectively.
For the fiscal third quarter, the consensus estimate for STRT’s earnings per share has moved down 33 cents in the past 90 days. Its bottom-line estimates imply a decline of 24% from the year-ago reported number.
The Zacks Consensus Estimate for revenues suggests a year-over-year decline of 2.4%.
STRT surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 71.07%. This is depicted in the graph below:
Strattec Security Corporation Price and EPS Surprise
In the fiscal second quarter, Strattec reported adjusted earnings per share of $1.71, which rose from 65 cents recorded in the year-ago period and beat the Zacks Consensus Estimate of 93 cents. The company reported $137.5 million, which increased 6% year over year and surpassed the Zacks Consensus Estimate by 5.89%.
Things to Note
Strattec’s profitability has improved as operational and restructuring initiatives begin to take hold. Its restructuring efforts are expected to generate roughly $3.4 million in annualized savings. With selling and administrative expenses targeted at about 10-11% of sales in the second half, disciplined cost control is likely to have supported profitability.
The company generated $13.9 million in operating cash flow in the fiscal second quarter of 2026, up 48% year over year. Improved cash flow provides greater financial flexibility to support restructuring initiatives, technology investments and potential balance-sheet strengthening. STRT ended the quarter with $99 million in cash and minimal debt, with only about $2.5 million tied to its joint venture. It expects roughly $40 million in operating cash flow for fiscal 2026 and capital spending below $10 million.
Improving profitability and cash flows are likely to have improved Strattec’s performance in the fiscal third quarter.
However, long product cycles limit near-term growth catalysts. New customer opportunities are progressing, but the revenue impact is likely several years away. The discussions for access products and digital key programs are tied to model year 2029 and beyond, reflecting the automotive industry’s long platform development cycles. While platform awards typically provide revenues for 5-7 years once secured, the extended timeline implies limited incremental contribution in fiscal 2026.
The company expects fiscal 2026 second-half sales to decline about 3-4% year over year due to softer U.S. auto production and the lapping of fiscal 2025 pricing actions beginning in the third quarter of fiscal 2026. The expected decline in second-half sales is likely to have impacted the company’s top-line growth in the fiscal third quarter.
Earnings Whispers
Our proven model does not conclusively 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.
The Zacks Consensus Estimate for earnings is pegged at 40 cents per share.
AAP surpassed earnings estimates in each of the trailing four quarters, the average surprise being 55.97%.
AutoZone, Inc. (AZO - Free Report) has an Earnings ESP of -1.45% and a Zacks Rank #3 at present. It is scheduled to post third-quarter fiscal 2026 earnings on May 26. The Zacks Consensus Estimate for earnings is pegged at $36.09 per share.
AZO beat earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 2.30%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Strattec Gears Up to Report Q3 Earnings: What's in the Cards?
Key Takeaways
Strattec Security Corporation (STRT - Free Report) is slated to release third-quarter fiscal 2026 results on May 7, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s EPS and revenues is pegged at $1.14 per share and $140.7 million, respectively.
For the fiscal third quarter, the consensus estimate for STRT’s earnings per share has moved down 33 cents in the past 90 days. Its bottom-line estimates imply a decline of 24% from the year-ago reported number.
The Zacks Consensus Estimate for revenues suggests a year-over-year decline of 2.4%.
STRT surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 71.07%. This is depicted in the graph below:
Strattec Security Corporation Price and EPS Surprise
Strattec Security Corporation price-eps-surprise | Strattec Security Corporation Quote
Q2 Highlights
In the fiscal second quarter, Strattec reported adjusted earnings per share of $1.71, which rose from 65 cents recorded in the year-ago period and beat the Zacks Consensus Estimate of 93 cents. The company reported $137.5 million, which increased 6% year over year and surpassed the Zacks Consensus Estimate by 5.89%.
Things to Note
Strattec’s profitability has improved as operational and restructuring initiatives begin to take hold. Its restructuring efforts are expected to generate roughly $3.4 million in annualized savings. With selling and administrative expenses targeted at about 10-11% of sales in the second half, disciplined cost control is likely to have supported profitability.
The company generated $13.9 million in operating cash flow in the fiscal second quarter of 2026, up 48% year over year. Improved cash flow provides greater financial flexibility to support restructuring initiatives, technology investments and potential balance-sheet strengthening. STRT ended the quarter with $99 million in cash and minimal debt, with only about $2.5 million tied to its joint venture. It expects roughly $40 million in operating cash flow for fiscal 2026 and capital spending below $10 million.
Improving profitability and cash flows are likely to have improved Strattec’s performance in the fiscal third quarter.
However, long product cycles limit near-term growth catalysts. New customer opportunities are progressing, but the revenue impact is likely several years away. The discussions for access products and digital key programs are tied to model year 2029 and beyond, reflecting the automotive industry’s long platform development cycles. While platform awards typically provide revenues for 5-7 years once secured, the extended timeline implies limited incremental contribution in fiscal 2026.
The company expects fiscal 2026 second-half sales to decline about 3-4% year over year due to softer U.S. auto production and the lapping of fiscal 2025 pricing actions beginning in the third quarter of fiscal 2026. The expected decline in second-half sales is likely to have impacted the company’s top-line growth in the fiscal third quarter.
Earnings Whispers
Our proven model does not conclusively 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.
Earnings Whispers for Other Auto Stocks
Advance Auto Parts, Inc. (AAP - Free Report) has an Earnings ESP of +1.38% and a Zacks Rank #2 at present. It is scheduled to post first-quarter 2026 earnings on May 21. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for earnings is pegged at 40 cents per share.
AAP surpassed earnings estimates in each of the trailing four quarters, the average surprise being 55.97%.
AutoZone, Inc. (AZO - Free Report) has an Earnings ESP of -1.45% and a Zacks Rank #3 at present. It is scheduled to post third-quarter fiscal 2026 earnings on May 26. The Zacks Consensus Estimate for earnings is pegged at $36.09 per share.
AZO beat earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 2.30%.