Cooper-Standard (CPS) Reports Q3 Loss, Trims '19 Guidance

Cooper-Standard Holdings Inc. (NYSE:CPS) reported adjusted loss of 31 cents per share in third-quarter 2019 against the Zacks Consensus Estimate of earnings of 82 cents. The year-ago quarter’s profit was $1.05 per share. Unfavorable volume and mix, foreign exchange, as well as the sale of the company’s Anti-Vibration Systems resulted in the underperformance.

In the quarter under review, the company generated revenues of $729 million, lower than the year-ago figure of $862 million. However, revenues topped the Zacks Consensus Estimate of $703 million.

During the reported quarter, adjusted net loss was $5.2 million against the year-ago net income of $19.1 million. Adjusted EBITDA declined to $43.5 million from $69.6 million recorded in the third quarter of 2018.

Segmental Performance

Sales in the North America segment were $393.7 million, down from the year-ago figure of $471.5 million. During the quarter, adjusted EBITDA in the segment came in at $62.6 million, down from $71.6 million recorded in the prior-year period.

Sales in the Europe segment were $197.4 million, down from $228.3 million in third-quarter 2018. However, the segment’s adjusted EBITDA was $6.7 million, up a whopping 622% year over year.

The Asia Pacific segment reported sales of $112.6 million in the reported quarter, down from $136.2 million in third-quarter 2018. The segment recorded negative EBITDA of $22.9 million versus $1.2 million in third-quarter 2018.

The company’s South America segment generated sales worth $25.2 million during the quarter under review, slightly lower than $25.6 million in third-quarter 2018. The segment reported loss of $2.9 million, wider than the prior-year loss of $1.7 million.

Financials

Cooper-Standard had $323.1 million of cash and cash equivalents as of Sep 30, 2019 compared with $264.9 million on Dec 31, 2018. The company had long-term debt of $736 million, representing a debt-to-capital ratio of 44.4%

2019 Guidance

For 2019, the company anticipates sales in the range of $3-$3.1 billion, down from the previous view of $3-$3.2 billion. It expects adjusted EBITDA in the band of $190-$210 million, down from the earlier guidance of $270-$300 million. Further, the company expects capital expenditure in the range of $165-$175 million versus the prior guided range of $175-$185 million.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the Auto-Tires-Trucks sector are Spartan Motors, Inc. (NASDAQ:SPAR) , SPX Corporation (NYSE:SPXC) and BRP Inc. (NASDAQ:DOOO) . While Spartan Motors sports a Zacks Rank #1 (Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spartan Motors has an estimated earnings growth rate of 85.42% for the current year. The company’s shares have surged roughly 113.9% in a year’s time.

SPX has an expected earnings growth rate of 23.18% for 2019. The company’s shares have surged 59.9% in the past year.

BRP has a projected earnings growth rate of 18.49% for the current year. Its shares have gained around 14.4% over the past year.

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