Superior Industries' Q4 Earnings Surge - Analyst Blog


Superior Industries International Inc. 's ( SUP ) earnings per share surged 130% year over year to 23 cents for the fourth quarter of 2013 compared with 10 cents in the fourth quarter of 2012. Earnings per share were in line with the Zacks Consensus Estimate. Net income surged 138% to $6.4 million from $2.7 million in the year-ago quarter.

Revenues for the quarter dropped 8% year over year to $192.5 million, lagging the Zacks Consensus Estimate of $198 million. The year-over-year decline was due to lower unit shipments and a decline in the average selling price resulting from lower aluminum prices. Unit shipments fell to 2.9 million from 3.2 million in the prior-year quarter.

Gross profit increased 48% to $18.9 million or 10% of sales from $12.8 million or 6% in the prior-year quarter. The increase was attributable to lower costs, which offset the impact of lower unit shipment.

Selling, general and administrative expenses (SG&A) decreased 6.5% to $6.9 million in the quarter, or 4% of net sales, from $7.4 million or 4% in the prior-year quarter. The decrease in expenses was due to a decline in legal expenses and gains from accounting for land, partially offset by severance costs related to the retirement of the company's CEO.

Operating income increased 123% to $12 million from $5.4 million a year ago. The increase was due to lower SG&A expenses and higher gross profit.

2013 Results

Superior Industries recorded earnings of 83 cents per share in 2013, beating the Zacks Consensus Estimate of 82 cents. In comparison, the company generated earnings of $1.13 per share in 2012. Net income amounted to $22.8 million, down from $30.9 million in 2012.

Revenues decreased 4% to $789.6 million from $821.5 million in 2012, missing the Zacks Consensus Estimate of $795 million. The year-over-year fall was due to lower unit shipments and decline in average selling price.

Financial Details

As of Dec 29, 2013, Superior Industries had a working capital of $284.8 million, including cash, cash equivalents and short-term investments of $203.1 million. This compared with a working capital of $338.3 million including cash, cash equivalents and short-term investments of $207.3 million as of Dec 30, 2012. The company had no bank or other interest bearing debt at the end of the quarter.

Cash flow from operating activities increased to $69.3 million in 2013 from $65.8 million in 2012. Capital expenditures increased to $68 million from $23.1 million in 2012.

Capital Deployment

Superior Industries has spent $10 million on share buybacks to date, under the $30 million repurchase program approved by the board of directors on Mar 27, 2013.

During the year, Superior Industries announced a 12.5% hike in its quarterly cash dividend, raising it to 18 cents per share.

Superior Industries carries a Zacks Rank #3 (Hold). Some stocks that are performing well in the industry are Allison Transmission Holdings, Inc. ( ALSN ), STRATTEC Security Corporation ( STRT ) and Gentex Corp. ( GNTX ). Allison Transmission and STRATTEC carry a Zacks Rank #1 (Strong Buy), while Gentex Corp. holds a Zacks Rank #2 (Buy).

ALLISON TRANSMN (ALSN): Free Stock Analysis Report

GENTEX CORP (GNTX): Free Stock Analysis Report

STRATTEC SEC CP (STRT): Free Stock Analysis Report

SUPERIOR INDS (SUP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ALSN , GNTX , STRT , SUP

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