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Shiloh Industries' (SHLO) Q1 Loss Narrows Y/Y on Lower Costs
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Shiloh Industries Inc. reported improved year-over-year results for first-quarter fiscal 2017 (ended Jan 31, 2017). Adjusted bottom-line came in at loss of 3 cents per share, narrower than loss of 20 cents recorded in the year-ago quarter.
Since the release of fiscal first-quarter results on Mar 9, Shiloh Industries’ shares lost 11.5% versus 0.08% gain recorded by the Zacks categorized Steel Producers industry.
Top-Line Results
In the quarter, Shiloh Industries generated revenues of $247.9 million, down 1.2% year over year. The top-line results were adversely impacted by unfavorable foreign currency movements, partially offset by healthy increase in automotive production sales.
Geographically, revenues generated in Europe increased 8.1% while that in the U.S and Rest of the World decreased 2.4% and 8.1%, respectively.
Margins
In the quarter, Shiloh Industries’ cost of sales declined 4.7% year over year, representing roughly 90.4% of net revenue compared with 93.7% in the year-ago quarter. Gross margin increased 330 basis points to 9.6%. Selling, general and administrative expenses were 8.1% of net revenue compared with 6.9% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization were $14.4 million, up from $8.9 million in the prior-year quarter. Interest expenses grew 10.6% year over year.
Balance Sheet and Cash Flow
Exiting the fiscal first quarter, Shiloh Industries’ cash and cash equivalents were $6 million, down from $8.7 million at the end of the preceding quarter. Long-term debt decreased 7.9% sequentially to $236.7 million.
In the quarter, Shiloh Industries generated net cash of $26.6 million from its operating activities, up from $18.6 million in the year-ago quarter. Capital expenditure totaled $9.1 million, up from $1.8 million in the year-ago quarter.
Shiloh Industries currently has a market capitalization of $233.9 million. Increases in the company’s new business wins as well as rise in light vehicle production in its prime operating areas will prove advantageous for it. However, the company is facing competition from other players in the steel industry that may restrict its growth momentum.
POSCO’s earnings expectations for 2017 improved over the past 60 days.
Ternium S.A.’s earnings estimates for 2017 and 2018 have been revised upward over the last 60 days. It has an average positive earnings surprise of 16.43% for the last four quarters.
United States Steel Corporation has witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Shiloh Industries' (SHLO) Q1 Loss Narrows Y/Y on Lower Costs
Shiloh Industries Inc. reported improved year-over-year results for first-quarter fiscal 2017 (ended Jan 31, 2017). Adjusted bottom-line came in at loss of 3 cents per share, narrower than loss of 20 cents recorded in the year-ago quarter.
Since the release of fiscal first-quarter results on Mar 9, Shiloh Industries’ shares lost 11.5% versus 0.08% gain recorded by the Zacks categorized Steel Producers industry.
Top-Line Results
In the quarter, Shiloh Industries generated revenues of $247.9 million, down 1.2% year over year. The top-line results were adversely impacted by unfavorable foreign currency movements, partially offset by healthy increase in automotive production sales.
Geographically, revenues generated in Europe increased 8.1% while that in the U.S and Rest of the World decreased 2.4% and 8.1%, respectively.
Margins
In the quarter, Shiloh Industries’ cost of sales declined 4.7% year over year, representing roughly 90.4% of net revenue compared with 93.7% in the year-ago quarter. Gross margin increased 330 basis points to 9.6%. Selling, general and administrative expenses were 8.1% of net revenue compared with 6.9% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization were $14.4 million, up from $8.9 million in the prior-year quarter. Interest expenses grew 10.6% year over year.
Balance Sheet and Cash Flow
Exiting the fiscal first quarter, Shiloh Industries’ cash and cash equivalents were $6 million, down from $8.7 million at the end of the preceding quarter. Long-term debt decreased 7.9% sequentially to $236.7 million.
In the quarter, Shiloh Industries generated net cash of $26.6 million from its operating activities, up from $18.6 million in the year-ago quarter. Capital expenditure totaled $9.1 million, up from $1.8 million in the year-ago quarter.
Shiloh Industries, Inc. Price and Consensus
Shiloh Industries, Inc. Price and Consensus | Shiloh Industries, Inc. Quote
Conclusion
Shiloh Industries currently has a market capitalization of $233.9 million. Increases in the company’s new business wins as well as rise in light vehicle production in its prime operating areas will prove advantageous for it. However, the company is facing competition from other players in the steel industry that may restrict its growth momentum.
Some stocks worth considering in the industry include POSCO (PKX - Free Report) , Ternium S.A. (TX - Free Report) and United States Steel Corporation (X - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
POSCO’s earnings expectations for 2017 improved over the past 60 days.
Ternium S.A.’s earnings estimates for 2017 and 2018 have been revised upward over the last 60 days. It has an average positive earnings surprise of 16.43% for the last four quarters.
United States Steel Corporation has witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>