Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Superior Industries (SUP) Posts Loss in Q1, Beats on Sales

Published 05/13/2020, 07:33 AM
Updated 07/09/2023, 06:31 AM

Superior Industries International (NYSE:SUP), Inc. SUP reported an adjusted first-quarter 2020 loss of 25 cents, narrower than the Zacks Consensus Estimate of a loss of 32 cents. The loss per share, however, widened 13.6%, year on year. Substantial decline in sales volumes in Europe and North America resulted in the dismal performance.

The aluminum-wheel manufacturer reported revenues of $301 million, beating the Zacks Consensus Estimate of $295 million. The top line, however, came in lower than the year-ago figure of $358 million. This downside resulted mainly from lower volumes and lower aluminum prices.

Superior Industries suspended the 2020 guidance as it expects the coronavirus pandemic’s impact to strain its operations in the days to come.

Superior Industries International Inc Price, Consensus and EPS Surprise

Quarter Details

During the first quarter, the company’s wheel unit shipments decreased 15% year over year to 4.3 million. This downside primarily stemmed from production declines amid the coronavirus crisis. Shipments in Europe came in at 2.09 million, down from the 2.41 million recorded in first-quarter 2019. In North America, the shipments were 2.22 million, lower than the year-ago figure of 2.62 million.

Sales in the European market came in at $145.5 million, lower than the $172.6 million recorded in the year-ago quarter. Sales in the North American market totaled $155.6 million, down from the prior-year period’s $185.1 million.

The company reported an operating loss of $183 million as against the operating profit of $19 million recorded in the year-ago quarter. Selling, general and administrative expenses in the quarter were $13 million compared with the year-ago quarter’s $14 million.

Net cash provided by operating activities summed $31 million in the March-end quarter, up from the year-ago quarter’s $29 million. Capital expenditure amounted to $13.9 million.

During the quarter, Superior Industries paid dividends of $3 million and purchased $4 million of shares from minority equity holders of Superior Industries Europe AG.

As of Mar 31, 2020, the company had total liquidity of $296 million compared with the $243 million witnessed in the prior-year period. Net debt was $542 million as of Mar 31, 2020, down from the prior-year quarter’s $626 million.

Zacks Rank & Stocks to Consider

Superior Industries currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Veoneer (NYSE:VNE), Inc. VNE, Unique Fabricating (NYSE:UFAB), Inc. UFAB and Modine (NYSE:MOD) Manufacturing Company MOD, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Superior Industries International Inc (SUP): Free Stock Analysis Report

Modine Manufacturing Company (MOD): Free Stock Analysis Report

Unique Fabricating Inc (UFAB): Free Stock Analysis Report

Veoneer Inc (VNE): Free Stock Analysis Report

To read this article on click here.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.