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Cooper-Standard (CPS) Reports Loss in Q4, Beats on Revenues

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Cooper-Standard Holdings Inc. (CPS - Free Report) reported adjusted loss of $1.32 per share in fourth-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 59 cents, mainly due to lower revenues across all segments. The year-ago quarter’s profit was $1.47 per share.

In the fourth quarter, the company generated revenues of $726 million, lower than the year-ago figure of $872 million. This downside mainly resulted from the UAW work stoppage in the United States and lower-than-planned volumes on certain vehicle programs. However, the revenue figure topped the Zacks Consensus Estimate of $694 million.

During the reported quarter, adjusted net loss was $22.3 million as against the net income of $26.4 million recorded in the year-ago period. Adjusted EBITDA declined to $25.7 million from the $75.7 million recorded in the fourth quarter of 2018.

Cooper-Standard Holdings Inc. Price, Consensus and EPS Surprise

Segmental Performance

Sales in the North America segment were $368.4 million, down from the year-ago figure of $476.4 million. During the quarter, adjusted EBITDA in the segment came in at $37.5 million, down from the $79.9 million recorded in the prior-year period.

Sales in the Europe segment were $199.96 million, down from the $230.2 million witnessed in fourth-quarter 2018. The segment’s adjusted EBITDA summed 429,000, slumping 91.3% year on year.

The Asia Pacific segment reported sales of $136.9 million in the December-end quarter, down from the $141.8 million generated in fourth-quarter 2018. The segment reported negative EBITDA of $13.7 million compared with the negative EBITDA of $6.5 million witnessed in fourth-quarter 2018.

The company’s South America segment generated sales worth $20.95 million during the reported period, slightly lower than the prior-year quarter’s $22.3 million. However, the segment reported adjusted EBITDA of $1.45 million as against the loss of $2.6 million witnessed in the comparable period last year.

Financials

Cooper-Standard had $359.5 million of cash and cash equivalents as of Dec 31, 2019 compared with $264.9 million on Dec 31, 2018. The company had long-term debt of $746.2 million as of Dec 31, 2019, representing a debt-to-capital ratio of 46%

2020 Guidance

For 2020, the company anticipates sales of $2.85-$3.05 billion. It expects adjusted EBITDA in the $150-185 million band and capital expenditure in the range of $140-$150 million.

Zacks Rank & Stocks to Consider

Cooper-Standard currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks sector include SPX Corporation (SPXC - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) and Adient PLC (ADNT - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

SPX has an expected earnings growth rate of 6.52% for 2020. The stock has rallied 26.9% in the past year.

Fox Factory has an estimated earnings growth rate of 9.67% for the ongoing year. The company’s shares have gained 10.5% in a year’s time.

Adient has an estimated earnings growth rate of 17.79% for the current year. The company’s shares have appreciated 26.9% over the past year.

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