TRW Automotive Holdings Corp.
) hit new 52-week high of $68.93 on Jul 5, which is above its
previous level of $68.38, and closed at $68.73 on the same day.
The closing price represented a strong one-year return of 81.4%
and year-to-date return of 25.0%.
TRW Automotive, headquartered in Michigan, is a leading
manufacturer of advanced technology products and services for the
automotive markets. The company operates in 27 countries through
its subsidiaries. It has a market cap of $8.3 billion. Average
volume of shares traded over the last three months stood at
Shares of the company started escalating due to improving
fundamentals in the automotive components supplying market.
However, the company failed to impress investors with its first
quarter results on Apr 30.
TRW posted earnings of $1.51 per share in the first quarter of
2013, topping the Zacks Consensus Estimate of $1.46. However,
earnings fell 6.8% from $1.62 per share in the first quarter of
2012 due to lower operating income on the back of a higher mix of
lower margin business and planned increases in costs to support
future growth. Net earnings dipped 10.4% to $189 million from
$211 million a year ago. All of them excluded special
Revenues in the quarter were almost flat at $4.2 billion as the
impact of increasing demand for TRW's innovative technologies and
higher vehicle production volumes in China were offset by
significantly lower vehicle production in Europe.
U.S. auto sales continue to improve driven by continued
macroeconomic recovery, aging vehicles on the U.S. roads and
strong demand for commercial vehicles from businesses. Seasonally
adjusted annual sales rate in June this year reached its highest
level of 15.9 million units since November 2007.
Currently, shares of TRW retain a Zacks Rank #3, which translates
to a short-term rating (1-3 months) of Hold. Some other stocks
that are performing well in the industry include
Magna International Inc.
), each with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).
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