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Superior Industries' (SUP) Earnings Beat Estimates in Q2

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Superior Industries International, Inc. (SUP - Free Report) reported adjusted loss of 6 cents in second-quarter 2019, which is narrower than the Zacks Consensus Estimate of a loss of 7 cents.

Net sales of $352.5 million in the reported quarter missed the Zacks Consensus Estimate of $364 million. The figure was lower than $389 million recorded in the year-ago quarter. The downside was caused by lower volume and weaker Euro, which were partly offset by improved product mix.

During the second quarter, the company’s wheel unit shipments declined 11.9% year over year to 4.9 million. The decline primarily stemmed from softer industry production levels, reduced take rates and share in North America as well as lower aftermarket volume in Europe. Gross profit fell to $40 million from $53.6 million in the year-ago quarter.

Selling, general and administrative expenses contracted to $16 million (4.5% of net sales) in second-quarter 2019 from $22.3 million in the year-ago quarter. The downtick was caused by lower acquisition and integration-related expenses.

 

Financial Details

At the end of the reported quarter, Superior Industries’ net cash provided by operating activities was $40.9 million compared with $16.4 million in the year-ago period. Capital expenditures totaled $15.3 million, flat year over year.

Outlook

Superior Industries reiterated its guidance for 2019. The company projects unit shipments in the range of 19.5-19.9 million, which are likely to drive net sales to $1.39-$1.44 billion. Value-added sales are projected in the band of $755-$795 million. Adjusted EBITDA is expected to be $165-$180 million. Further, capital expenditure is projected to be around $75 million while cash flow from operation is expected in the range of $125-$145 million.

Zacks Rank & Stocks to Consider

Currently, Superior Industries has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space worth considering are Fox Factory Holding Corp (FOXF - Free Report) , CarMax, Inc (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fox Factory has an expected long-term growth rate of 16.7%. In the past year, shares of the company have rallied 16.1%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 15%.

Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 17.1%.

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