Superior Industries International Earnings Preview

Motley Fool Staff
Updated

Investors never know what to expect from Superior Industries International (NYS: SUP) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Monday, March 5. Superior Industries International is engaged in the design and manufacture of aluminum road wheels for sale to original equipment manufacturers.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Superior Industries International with analysts unanimously rating it hold. Analysts don't like Superior Industries International as much as competitor Fuel Systems Solutions overall. Three out of seven analysts rate Fuel Systems Solutions a buy compared to zero of three for Superior Industries International. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $204.9 million in revenue this quarter. That would represent a rise of 7.3% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.22 per share. Estimates range from $0.19 to $0.25.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 82.1% awarding it an "outperform" rating. The community at large concurs with the All-Stars, with 82.2% assigning it a rating of "outperform." The CAPS rating of five out of five stars for Superior Industries International is far more upbeat than the community assessment.

Management:
Superior Industries International's income has fallen year-over-year by an average of more than twofold over the past five quarters. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 4.7 percentage points in the last quarter. Revenue rose 12.7% while cost of sales rose 18.6% to $194.5 million from a year earlier.

Now let's look at how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. Superior Industries International saw a decrease in its gross margins year-over-year in the last two quarters. Gross margins reflect the total sales revenue that the company retains after costs. Here are Superior Industries International's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

6.1%

9.4%

8.9%

15.2%

Operating Margin

2.9%

6.2%

5.4%

11.2%

Net Margin

2.0%

7.0%

4.2%

11.7%

For all our Superior Industries International-specific analysis, including earnings and beyond, add Superior Industries International to My Watchlist.

At the time thisarticle was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement