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Superior Industries' (SUP) Q1 Earnings and Revenues Beat

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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%.

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