Share price of
Superior Industries International Inc.
) decreased 0.2% on Aug 1, 2014 to $18.68 after the company
reported second-quarter 2014 earnings of 18 cents per share,
missing the Zacks Consensus Estimate of 23 cents. Earnings per
share decreased 21.7% from 23 cents in the comparable quarter of
2013. Meanwhile, net income declined 20.6% to $5.0 million from
$6.3 million in the year-ago quarter.
Superior Industries International, Inc -
Earnings Surprise | FindTheBest
Revenues for the quarter were in line with the year-ago figure
of $199 million but surpassed the Zacks Consensus Estimate of $187
million. Unit shipments increased 1% to 3.0 million.
Gross profit decreased 3.1% to $15.7 million (7.9% of sales) from
$16.2 million (8.2% of sales) in the prior-year quarter. The
decline can be attributed to increased factory costs, partially
offset by a marginal increase in unit sales volume.
Selling, general and administrative expenses (SG&A) increased
2.8% to $7.3 million (3.7% of sales) in the quarter, from $7.1
million (3.6% of sales) in the prior-year quarter. Expenses
increased on higher professional service fees, legal expenses and
stock based compensation costs.
Operating income decreased 7.7% to $8.4 million from $9.1 million a
year ago. The decrease was due to lower gross profit.
Superior Industries repurchased $29.3 million worth of shares under
its previously announced $30 million repurchase program. The
company is also constructing a new manufacturing plant in Mexico,
which is expected to start production by the end of 2014. The plant
will initiate full scale production by the second half of 2015.
Superior Industries is planning to close the Rogers, Arkansas
facility by the end of this year. This closure will lead to labor
cost savings of $15 million owing to the retrenchment of 500
As of Jun 29, 2014, Superior Industries had a working capital of
$233.6 million, including cash, cash equivalents and short-term
investments of $130.4 million. This compared unfavorably with
working capital of $284.8 million including cash, cash equivalents
and short-term investments of $203.1 million as of Dec 29, 2013.
Investments in various plants along with the new wheel
manufacturing plant being constructed in Mexico and the repurchase
of the company's common stock led to the decline in working
capital. Notably, the company had no bank or other interest-bearing
debt at the end of the quarter.
Other Stocks to Consider
Superior Industries carries a Zacks Rank #3 (Hold). Better-ranked
stocks worth considering in the same industry include Meritor Inc.
), China Automotive Systems Inc. (
) and Magna International Inc. (
). Both Meritor and China Automotive sport a Zacks Rank #1 (Strong
Buy), while Magna International carries a Zacks Rank #2 (Buy).
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