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Cooper-Standard (CPS) Q1 Earnings Miss Estimates, Down Y/Y

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Cooper-Standard Holdings Inc.(CPS - Free Report) reported adjusted earnings of 67 cents per share in first-quarter 2019, missing the Zacks Consensus Estimate of $1. Further, the bottom-line figure was lower than the year-ago quarter figure of $3.45 per share. Challenging market conditions impacted the company’s results.

Sales were $880 million, which beat the Zacks Consensus Estimate of $874 million. The year-ago figure was $967.4 million. This year-over-year decline in sales was primarily due to unfavorable volume and mix, foreign exchange, and price adjustments, partly offset by positive impacts of acquisitions.

During the reported quarter, adjusted net income was $11.8 million, down from the prior-year quarter figure of $63.8 million. Adjusted EBITDA declined to $66.4 million from $122.6 million recorded in the first quarter of 2018.

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

 

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

Segmental Performance

Sales in the North America segment were $474.7 million, marking a decline from the year-ago quarter figure of $499.2 million. In first-quarter 2019, the segment’s adjusted EBITDA was $57.6 million, marking a decline from $86.8 million recorded in the prior-year quarter.

Sales in the Europe segment were $254.6 million in the first quarter, down from $292.4 million in first-quarter 2018. The segment’s adjusted EBITDA was $9.4 million against $23 million in the prior-year quarter.

The Asia Pacific segment reported sales of $127.5 million in the reported quarter, down from $149.2 million in first-quarter 2018. The segment recorded adjusted EBITDA of $767,000, down from loss of $13.5 million in first-quarter 2018.

The company’s South America segment reported sales of $23.2 million during the quarter under review, down from $26.6 million in first-quarter 2018. The segment witnessed loss of $1.4 million, up from the prior-year quarter’s loss of $597,000.

Financials

Cooper-Standard had $262.2 million of cash and cash equivalents as of Mar 31, 2019, compared with $264.9 million as of Dec 31, 2018. The company had long-term debt of $738.1 million as of Mar 31, 2019, compared with $729.8 million recorded as of Dec 31, 2018.

2019 Outlook

For 2019, the company anticipates sales of $3.2-$3.4 billion, down from the earlier $3.4-$3.6 billion. It expects adjusted EBITDA of $300-$340 million, which remained unchanged. Further, the company expects capital expenditure of $180-$190 million.

Zacks Rank & Stocks to Consider

Cooper-Standard currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are AB Volvo (VLVLY - Free Report) , PACCAR, Inc. (PCAR - Free Report) , and Geely Automobile Holdings Ltd. (GELYY - Free Report) . While Volvo currently sports a Zacks Rank #1 (Strong Buy), PACCAR and Geely carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Volvo has an expected long-term growth rate of 5%. Over the past three months, shares of the company have gained 11.7%.

PACCAR has an expected long-term growth rate of 8.4%. Over the past three months, shares of the company have gained 8.3%.

Geely Automobile has an expected long-term growth rate of 7%. Share price of the company has increased 21.7% in the past three months.

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