Superior Industries Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of aluminum wheel maker Superior Industries (NYS: SUP) climbed as high as 11% on Monday after its quarterly results topped Wall Street expectations.
So what: Manufacturing inefficiencies continue to weigh heavily on margins, but a big top-line beat -- fourth-quarter revenue jumped 14% to $216.8 million versus the consensus of $205 million -- suggests that things are starting to turn around. Additionally, the company entered 2012 with a cash hoard of $193 million and no debt, giving conservative followers plenty to feel good about.
Now what: Don't let today's rally keep you from looking into the stock. "We believe we have great opportunities to improve our operating performance," said Chairman and CEO Steven Borick. "Although tangible results of our efforts likely will not be visible in the shorter term, we are committed to implementing improvements that we are confident will contribute to the longer-term health of the business." With the stock still off about 30% from its 52-week high and sporting a 3.5% dividend yield, betting on that optimism seems like a good idea.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.
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