Commercial Vehicle Group Inc. (
) is a supplier of products and systems for the global commercial
vehicle market. Its products include static and suspension seat
systems, electronic wiring harness assemblies, controls and
switches, cab structures and components, interior trim systems,
interior and exterior finishes and mirrors and wiper systems.
In addition to manufacturing assemblies in North America, they
have facilities in Europe and Asia.
Disappointing Third Quarter Results
CVGI reported its third quarter results on November 4, 2013.
Revenues for the quarter were down 8.2%, compared
to those for the third quarter of 2012. Operating
loss for the quarter was ($0.08) per share, significantly worse
than the Zacks Consensus Estimate of $0.07 per share.
According to the management "certain of our end markets
experienced a difficult quarter that negatively impacted our
The company has missed Zacks Consensus Estimates in all of last
four quarters, with an average negative quarterly surprise of
Due to disappoining results, analysts have revised their
estimates for the current quarter and current year downwards.
Current estimates for the last quarter of 2013 stand at $0.03 per
share, down from $0.12 per share 60 days ago.
Similarly estimates for 2013 and 2014 have come down to ($0.44)
and $0.46 per share respectively, from $0.06 and $0.77 per share,
60 days ago.
Downward revisions have sent the stock back to Zacks Rank #5
(Strong Sell) last month.
The Bottom Line
While the company has taken a number of positive steps recently
including reorganizing the leadership team and addressing the
cost structure, a turnaround does not seem likely any time soon,
due to challenges in end markets.
CVGI is currently Zacks Rank # 5 (Strong Sell) stock, with an
Underperform recommendation. Further the Zacks Industry rank of
191(out of 265) also indicates further weakness in the short
Investors looking for exposure to Auto/Trucks related industries
could consider Tower International (TOWR) or Federated Mugal Corp
(FDML)-both are Zacks Rank #1 stocks, with longer-term
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COMML VEHICLE (CVGI): Free Stock Analysis
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