Superior Industries (SUP) Tops Q1 EPS by 45c, Revenues Beat; Offers FY21 Revenues Guidance

Superior Industries (NYSE: SUP) reported Q1 EPS of $0.18, $0.45 better than the analyst estimate of ($0.27). Revenue for the quarter came in at $358.2 million versus the consensus estimate of $300 million.

First Quarter 2021 Financial Highlights:

• Net sales of $358M; Value-Added Sales Adj. for FX1 of $198M, a 17%2 increase YoY
• Portfolio delivered 11% Content per Wheel1 growth; growth over market of 19%2
• Net income of $13M
• Adjusted EBITDA1 increased 39% YoY to $55M; margin expanded 330 bps3
• Funded debt decreased to $630M and Net Debt1 to $477M
• Cash from operations of $18M; Free Cash Flow1 of $3M

“Our team delivered impressive results in a rapidly shifting environment as we continued to execute our value creation roadmap and drive profitable growth,” commented Majdi Abulaban, President and Chief Executive Officer of Superior. “We have established a strong foundation with a robust portfolio of differentiated technologies that are advancing Value-Added Sales and growth over market. Further, we generated strong earnings improvement and margin expansion in the face of a volatile production environment and supply chain challenges, including semiconductor shortages, that impacted the automotive industry. This is a testament to the enhanced cost and cash discipline we fostered throughout the business.”

Mr. Abulaban continued, “We remain focused on capitalizing on trends towards electrification, CO2 reduction and vehicle differentiation through our light weighting and premium finishing capabilities, as these technologies will strengthen our position as a growth over market company. I am confident in our ability to continue to generate significant shareholder value throughout 2021 and beyond.”

GUIDANCE:

Superior Industries sees FY2021 revenue of $1.3-1.37 billion, versus the consensus of $1.34 billion.

The Company reconfirmed its Full Year 2021 guidance. Based on IHS' latest forecast and management’s estimates for 2021, Superior assumes industry production in North America and Europe to increase year-over-year in 2021 by 20% and 10%, respectively.

“We had a strong start to the year, in part due to richer product mix as OEMs generally shifted production schedules to more premium vehicles in response to the shortage of semiconductors. As we look to the remainder of 2021 and the uncertainties associated with possible OEM supply chain disruption, especially the availability of semiconductors, we believe it prudent to maintain our full year 2021 outlook pending resolution of these uncertainties. We do, however, remain confident in our ability to continue to generate profitable growth as we execute our long-term strategic priorities,” commented Tim Trenary, Executive Vice President and Chief Financial Officer of Superior.

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

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