Superior Industries (SUP) Tops Q3 EPS by 46c, Revenues Beat; Offers 4Q Revenue Guidance Below Consensus, FY20 Revenue Mid-Point Guidance Below Consensus

Superior Industries (NYSE: SUP) reported Q3 EPS of $0.12, $0.46 better than the analyst estimate of ($0.34). Revenue for the quarter came in at $317 million versus the consensus estimate of $313.12 million.

Third Quarter 2020 Financial Highlights:

• Cost and cash actions deliver significant margin expansion and cash flow
• Unit shipments of 4.4M; net sales of $317M
• Value-Added Sales(1) of $192M, content per wheel growth of 7%(2)
• Net income of $11M, includes $4 million of restructuring and net other expense(3)
• Adjusted EBITDA(1) of $47M, a 20% increase compared to the prior year period
• Record liquidity(4) at $336M; total funded debt of $630M and net debt(5) of $519M

“Industry production in the third quarter of 2020 recovered significantly from the second quarter. Our business and team have performed well in the face of the challenges brought on by the current operating environment; we are pleased with the third quarter results. During the quarter we delivered substantial cash flow and earnings growth, as well as year-over-year margin improvement. This outcome was supported by the successful ramp-up of our facilities, structural cost improvements, the execution of both temporary and permanent cost reductions in response to COVID-19, and the ongoing mix shift towards higher content wheels, which has supported Value-Added Sales(1) growth at or above market throughout 2020,” commented Majdi Abulaban, President and Chief Executive Officer of Superior.

“Based on our results in the quarter, I am pleased to report that we are well ahead of our free cash flow target for 2020 and as a result, we are raising our free cash flow expectations for full year 2020. Further, I remain confident in our team’s ability to continue leveraging our differentiated technology portfolio to deliver value to our customers and shareholders over the long-term.”

GUIDANCE:

Superior Industries sees Q4 2020 revenue of $300-325 million, versus the consensus of $326.94 million.

Superior Industries sees FY2020 revenue of $1.06-1.09 billion, versus the consensus of $1.09 billion.

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

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