Superior Industries (SUP) Misses Q1 EPS by 8c, Revenues Miss; Affirms FY19 Revenue Outlook

Superior Industries (NYSE: SUP) reported Q1 EPS of ($0.24), $0.08 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $357.7 million versus the consensus estimate of $363.57 million.

• Unit shipments of 5.0 million compared to 5.5 million in the prior year
• Net sales of $357.7 million compared to $386.4 million in the prior year
• Value-Added Sales(1) of $192.8 million compared to $207.4 million in the prior year
• Value-Added Sales(1) per wheel of $38.26, up $0.80 compared to the prior year
• Net income of $2.0 million and a loss per diluted share of $0.24(2), which includes acquisition-related and other expenses of $0.02 per diluted share
• Adjusted EBITDA(1) of $43.2 million compared to $52.2 million in the prior year
• Full year 2019 outlook reaffirmed

Timothy McQuay, Executive Chairman of Superior, commented, “During the first quarter of 2019, we faced lower shipment volumes compared to last year, primarily in our North American operations, which was driven by reduced take rates on several platforms that we supply as well as softer industry production levels at our key customers. Our European business also continued to be impacted by softer industry production volumes within our customer base. Despite these headwinds in volume, we continued to capture the benefits from favorable product mix, including a secular shift to larger and more premium wheels during the quarter, with Value-Added Sales per wheel increasing $0.80 compared to the same period last year. While we anticipate the lower volumes in North America to persist throughout 2019, our focus remains on operational improvements and best-in-class execution in order to continue capitalizing on the secular trends. Also, during the quarter, our efforts and focus on cash flow generation yielded positive results with the net change in cash up $29.2 million year-over-year.”

“In addition, in April, we were extremely pleased to announce the appointment of Majdi Abulaban as President and Chief Executive Officer. Majdi brings to Superior a long track record of operational excellence and leadership within the automotive industry. We are looking forward to him joining the team next week,” concluded Mr. McQuay.

GUIDANCE:

Superior Industries sees FY2019 revenue of $1.42-1.47 billion, versus the consensus of $1.44 billion.

• Net sales are expected to be in the range of $1.42 billion to $1.47 billion, driven by unit shipments of 19.85 million to 20.30 million
• Value-Added Sales are expected to be in the range of $765 million to $805 million
• Adjusted EBITDA is expected to be in the range of $170 million to $185 million
• Cash flow from operations is expected to be between $125 million and $145 million
• Capital expenditures are expected to be approximately $85 million

For earnings history and earnings-related data on Superior Industries (SUP) click here.

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