Sypris Solutions (SYPR) Reports Q3 Loss of $0.10/sh

Sypris Solutions (NASDAQ: SYPR) reported Q3 EPS of ($0.10), versus $0.01 reported last year. Revenue for the quarter came in at $25.2 million, versus $25.7 million reported last year.

Outlook:

Commenting on the future, Mr. Gill added, “While challenging supply chain conditions impacted our third-quarter results, demand from customers serving the automotive, commercial vehicle and sport utility markets has remained at high levels, with Class 8 forecasts showing year-over-year production increases of 17.5% for 2022. Similarly, demand from customers in the defense and communications sector remains robust, while the outlook for the energy market continues to move in the right direction.

“We have updated our outlook to include a 15%-20% growth in the Company’s top line in 2022, which is down from our previous guidance. Additionally, changes in the revenue mix and supply chain inefficiencies are anticipated to slow margin improvement for the full year. Cash flow from operations is expected to show double digit percentage growth reflecting favorable working capital changes during the year.

“With a record backlog, new program wins and long-term contract extensions in place, we remain focused on meeting the important needs of our customers who serve defense, communications, energy, transportation, and other critical infrastructure industries. In our initial outlook for 2023, we expect the top line to increase 20-25% year-over-year as a result of the combined strength of our backlog for Sypris Electronics, increasing orders for our energy products and anticipated new program wins for Sypris Technologies. We also expect to achieve gross margin expansion in the range of 150 to 200 basis points in 2023 on a more favorable revenue mix and improved operational performance.”

For earnings history and earnings-related data on Sypris Solutions (SYPR) click here.

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