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Superior Industries (SUP) Beats on Q2 Earnings & Revenues
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Shares of Superior Industries International, Inc. (SUP - Free Report) have gained 13.3% in a day’s trading, following the second-quarter 2018 earnings release. In the quarter under review, the company’s adjusted earnings of 25 cents per share beat the Zacks Consensus Estimate of 7 cents. Including the impact of acquisition-related items, net income was $8.1 million or 9 cents per share.
Net Sales were $389 million in the reported quarter, beating the Zacks Consensus Estimate of $383.5 million. Further, the reported figure was higher than $240.6 million recorded in the year-ago quarter.
During the quarter under review, the company reported record wheel unit shipments of 5.6 million compared with 3.8 million in the prior-year quarter. The rise is primarily due to the addition of two months of European operations, which added 1.7 million units of shipment. Value-added sales, i.e. net sales minus pass-through charges for aluminum, increased to $204.4 million compared with $130.4 million in second-quarter 2017.
Superior Industries International, Inc. Price, Consensus and EPS Surprise
Gross profit rose to $53.6 million from $20.1 million in the year-ago quarter. The increase was due to enhanced operational efficiency in North America and the addition of two months of the European operations.
Selling, general and administrative expenses jumped to $22.3 million in second-quarter 2018 from $22.1 million in the prior-year quarter.
Financial Details
In second-quarter 2018, Superior Industries’ net cash, provided by the operating activities, was $16.4 million compared with $8.5 million used in the year-ago period. Capital expenditure was $15.3 million compared with $13.2 million recorded in the prior-year quarter.
Outlook
For 2018, Superior Industries revised its guidance of net sales, adjusted EBITDA and effective tax rate. The revised figures are based on the company’s first-half performance of 2018.
For 2018, the company expects net sales of $1.52-$1.56 billion compared with the prior expectation of $1.45-$1.5 billion. Adjusted EBITDA is expected to be $190-$205 million from the prior guidance of $185-$200 million. Moreover, the effective tax rate is now anticipated to be 25-29% compared with the previous outlook of 10-15%.
However, the company reaffirmed its value-added sales of $800-$835 million. Furthermore, the capital expenditure projection of around $95 million has been kept unchanged.
Zacks Rank & Key Picks
Superior Industries currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) . Fox Factory and Allison Transmission sport a Zacks Rank #1 (Strong Buy) while Honda carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over a year, shares of the company have gained 26.6%.
Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 67.2% in the past year.
Honda has an expected long-term growth rate of 3%. Over a year, shares of the company have gained 11.4%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Superior Industries (SUP) Beats on Q2 Earnings & Revenues
Shares of Superior Industries International, Inc. (SUP - Free Report) have gained 13.3% in a day’s trading, following the second-quarter 2018 earnings release. In the quarter under review, the company’s adjusted earnings of 25 cents per share beat the Zacks Consensus Estimate of 7 cents. Including the impact of acquisition-related items, net income was $8.1 million or 9 cents per share.
Net Sales were $389 million in the reported quarter, beating the Zacks Consensus Estimate of $383.5 million. Further, the reported figure was higher than $240.6 million recorded in the year-ago quarter.
During the quarter under review, the company reported record wheel unit shipments of 5.6 million compared with 3.8 million in the prior-year quarter. The rise is primarily due to the addition of two months of European operations, which added 1.7 million units of shipment. Value-added sales, i.e. net sales minus pass-through charges for aluminum, increased to $204.4 million compared with $130.4 million in second-quarter 2017.
Superior Industries International, Inc. Price, Consensus and EPS Surprise
Superior Industries International, Inc. Price, Consensus and EPS Surprise | Superior Industries International, Inc. Quote
Gross profit rose to $53.6 million from $20.1 million in the year-ago quarter. The increase was due to enhanced operational efficiency in North America and the addition of two months of the European operations.
Selling, general and administrative expenses jumped to $22.3 million in second-quarter 2018 from $22.1 million in the prior-year quarter.
Financial Details
In second-quarter 2018, Superior Industries’ net cash, provided by the operating activities, was $16.4 million compared with $8.5 million used in the year-ago period. Capital expenditure was $15.3 million compared with $13.2 million recorded in the prior-year quarter.
Outlook
For 2018, Superior Industries revised its guidance of net sales, adjusted EBITDA and effective tax rate. The revised figures are based on the company’s first-half performance of 2018.
For 2018, the company expects net sales of $1.52-$1.56 billion compared with the prior expectation of $1.45-$1.5 billion. Adjusted EBITDA is expected to be $190-$205 million from the prior guidance of $185-$200 million. Moreover, the effective tax rate is now anticipated to be 25-29% compared with the previous outlook of 10-15%.
However, the company reaffirmed its value-added sales of $800-$835 million. Furthermore, the capital expenditure projection of around $95 million has been kept unchanged.
Zacks Rank & Key Picks
Superior Industries currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) . Fox Factory and Allison Transmission sport a Zacks Rank #1 (Strong Buy) while Honda carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over a year, shares of the company have gained 26.6%.
Fox Factory has an expected long-term growth rate of 16.8%. Shares of the company have risen 67.2% in the past year.
Honda has an expected long-term growth rate of 3%. Over a year, shares of the company have gained 11.4%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>