Spartan Motors (SPAR) Misses Q3 EPS by 8c, Revenues Miss; Lowers FY18 EPS Outlook Below Consensus

Spartan Motors (NASDAQ: SPAR) reported Q3 EPS of $0.17, $0.08 worse than the analyst estimate of $0.25. Revenue for the quarter came in at $226.2 million versus the consensus estimate of $227.27 million.

• Sales increased $37.0 million, or 19.6%, to $226.2 million, from $189.2 million.
• Gross profit margin decreased 350 basis points to 11.6% of sales, from 15.1% of sales.
• Net income decreased $8.3 million, or 61.5%, to $5.2 million, or $0.15 per share, from $13.5 million, or $0.38 per share. The prior year net income includes the benefit from a $6.3 million, or $0.18 per share, tax valuation allowance adjustment due to the Company\'s improved financial condition.
• Adjusted EBITDA decreased 17.8% to $10.6 million, or 4.7% of sales, from $12.9 million, or 6.8% of sales.
• Adjusted net income decreased $1.4 million, or 18.9%, to $6.0 million, or $0.17 per share, from $7.4 million, or $0.21 per share, which excludes the $6.3 million, or $0.18 per share, tax valuation allowance adjustment.
• Consolidated backlog, excluding the multi-year USPS truck body order at September 30, 2018 totaled $325.9 million, essentially flat, compared to $323.4 million at September 30, 2017. Including the USPS order, consolidated backlog, totaled $484.9 million compared to $537.7 million a year ago.

"Our third quarter sales were up significantly year-over-year and all three of our segments remained profitable. Despite that progress, unexpected industry-wide headwinds negatively impacted our profitability for the period," said Daryl Adams, President and Chief Executive Officer. "As it stands, our results were hindered by multiple external factors, which resulted in production and labor inefficiencies and shipment delays. If not for the significant industry-wide headwinds and the operating issues we sustained as a result, we would have exceeded our internal operating plan for the quarter."

GUIDANCE:

Spartan Motors sees FY2018 EPS of $0.42-$0.48, versus the consensus of $0.63. Spartan Motors sees FY2018 revenue of $790-815 million, versus the consensus of $800 million.

For earnings history and earnings-related data on Spartan Motors (SPAR) click here.

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