Updated Research Report on TRW - Analyst Blog

By Zacks Equity Research,

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On Apr 16, 2014, we issued an upgraded research report on TRW Automotive Holdings Corp. ( TRW ). This Zacks Rank #2 (Buy) stock reported positive earnings surprises in each of the trailing four quarters with an average beat of 9.46%.

TRW Automotive reported an 18.7% increase in its fourth-quarter 2013 earnings to $1.84 per share from $1.55 (all excluding special items) a year ago. Earnings per share beat the Zacks Consensus Estimate of $1.63.

Revenues in the quarter grew 11.5% to $4.5 billion driven by strong demand for TRW's innovative technologies, increased vehicle production volumes together with positive currency translation impacts. Revenues beat the Zacks Consensus Estimate of $4.2 billion.

TRW Automotive is globally recognized as one of the largest and most diversified suppliers of automotive systems, modules and components to original equipment manufacturers (OEMs) and related aftermarkets. The company continues to invest in innovative technologies that enable it to win contracts. Moreover, it has a strong financial position, which allows efficient capital deployment.

Revenues for the year are expected in the range of $17.3-$17.6 billion. In the first quarter of 2014, TRW is expected to report total sales of $4.3 billion. The revenue expectation is based on higher vehicle production volumes, partially offset by the exit of certain businesses in the North American brake component and assembly operations.

The Zacks Consensus Estimate for TRW Automotive's 2014 earnings stands at $7.45 per share, up 8.1% over 2013.

Key Picks From the Sector

Some other stocks worth considering in the sector are Gentherm Inc. ( THRM ), Valeo SA ( VLEEY ) and Superior Industries International, Inc. ( SUP ), all of which carry a Zacks Rank #1 (Strong Buy).

SUPERIOR INDS (SUP): Free Stock Analysis Report

GENTHERM INC (THRM): Free Stock Analysis Report

TRW AUTOMTV HLD (TRW): Free Stock Analysis Report

VALEO SA-ADR (VLEEY): Get Free Report

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Zacks Investment Research

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

This article appears in: Investing , Business , Stocks
Referenced Stocks: SUP , THRM , TRW , VLEEY

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