TRW Automotive Shares Raced Higher: What You Need to Know
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What: Shares of TRW Automotive (NYS: TRW) drove to a 15% gain after the company reported fourth-quarter earnings last night.
So what: TRW filled its revenue tank to $4 billion in the fourth quarter, which lead to record full-year sales of $16.2 billion. Adjusted earnings per share came in at $1.84, which added up to $7.42 per share for the full year.
Now what: Guidance actually turned out lower than expected, with fiscal 2012 sales pegged between $16 billion and $16.4 billion, which was lower than the $16.6 billion consensus, but investors didn't seem to mind. During the quarter, the company completed a previously announced divestiture of some of its non-safety-related businesses in Asia, allowing it to focus more on the region. TRW's debt levels have also reached historic lows for the company.
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