Tower Int'l (TOWR) Tops Q1 EPS by 6c, Revenues Beat; Affirms FY19 EPS/Revenue Guidance Below Consensus, Offers FY20 Revenue Outlook

Tower Int'l (NYSE: TOWR) reported Q1 EPS of $0.23, $0.06 better than the analyst estimate of $0.17. Revenue for the quarter came in at $379 million versus the consensus estimate of $374 million.

• Revenue for the First Quarter was $379 million compared with $407 million in 2018, and previous Outlook of $375 million. The year over year revenue decrease reflects primarily lower sales resulting from launch cadence and program changeover, offset partially by higher revenue from new platforms.
• Income from continuing operations for the First Quarter 2019 was $7.7 million compared with $16.5 million in 2018. Including discontinued operations, GAAP net income was negative $5.1 million for the first quarter or $(0.24) per share, compared with net income of $17.3 million or $0.83 per diluted share last year. As detailed below, this year\'s results included certain items which adversely impacted net income by $9.8 million. Excluding these items and comparable items in 2018, earnings per diluted share for the First Quarter 2019 was $0.23 compared with $0.82 a year ago and previous Outlook of $0.18 per share.
• Adjusted EBITDA for the First Quarter 2019 was $30.4 million compared with $43.0 million a year ago and previous Outlook of $30 million.

"Tower delivered First Quarter 2019 results in-line with our Outlook. The sale of Tower Europe further strengthens our balance sheet and positions Tower to capitalize on the healthy and growing light truck and SUV market in North America. We continue to balance our capital allocation, by investing in profitable growth, reducing debt and returning capital to shareholders," said CEO Jim Gouin. "Near-term results will continue to be impacted by significant launch activity. However, with the completion of these launches, projected second half 2019 performance will result in higher run rate revenue, EBITDA and Free Cash Flow leading the way to a step function improvement in financial results for Full Year 2020."

GUIDANCE:

Tower Int'l sees FY2019 EPS of $2.10-$2.30, versus the consensus of $2.48. Tower Int'l sees FY2019 revenue of $1.575-1.6 billion, versus the consensus of $1.63 billion.

Tower Int'l sees FY2020 revenue of $1.69-1.74 billion, versus the consensus of $1.72 billion.

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

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