Tower Int'l (TOWR) Reports In-Line Q2 EPS, Beats on Revenues; Offers FY18 Revenue Outlook Above Consensus

Tower Int'l (NYSE: TOWR) reported Q2 EPS of $1.07, in-line with the analyst estimate of $1.07. Revenue for the quarter came in at $556 million versus the consensus estimate of $555.68 million.

Full year 2018 outlook includes

• Revenue of $2.17 billion, reflecting primarily net new business of $125 million, favorable foreign exchange and higher steel prices;
• Adjusted EBITDA of $230 million;
• Diluted Adjusted EPS of $4.10 per share; and
• Free Cash Flow of $50 million, with strong free cash flow in the second half of the year more than offsetting the cash outflow in the first half of the year.
• The Company's outlook for third quarter 2018 includes revenue of $525 million, Adjusted EBITDA of $57 million and Diluted Adjusted Earnings Per Share of $1.04.

"We remain balanced in our approach of growing profitably, reducing leverage – as evidenced by our July pay down of $50 million of Term Loan debt, and returning capital to shareholders," said CEO Jim Gouin. "Tower delivered solid financial results in the second quarter as Adjusted EBITDA and Adjusted EPS both increased by more than 10 percent. Revenue for the quarter increased 13 percent as Tower continues to benefit from the secular trends of outsourcing and a continued production mix shift from cars to trucks and SUVs. Tower\'s North American revenue continued to significantly outpace the market, growing by 16 percent while the industry production declined by 2 percent. These trends, in combination with our solid backlog of net new business, gives us further confidence that we will continue to grow our revenue faster than the industry in total."

GUIDANCE:

Tower Int'l sees FY2018 revenue of $2.17 million, versus the consensus of $2.15 million.

For earnings history and earnings-related data on Tower Int'l (TOWR) click here.

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