Superior Industries International Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Superior Industries International (NYS: SUP) reported earnings on Mar. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Superior Industries International beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins shrank, and net margins improved.

Revenue details
Superior Industries International reported revenue of $216.8 million. The two analysts polled by S&P Capital IQ expected sales of $205.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $191.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.51. The three earnings estimates compiled by S&P Capital IQ averaged $0.22 per share on the same basis. GAAP EPS of $1.48 for Q4 were 78% higher than the prior-year quarter's $0.83 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 8.3%, 690 basis points worse than the prior-year quarter. Operating margin was 5.5%, 630 basis points worse than the prior-year quarter. Net margin was 18.5%, 680 basis points better than the prior-year quarter.

Looking ahead
On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $868.6 million. The average EPS estimate is $1.30.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 76 members out of 92 rating the stock outperform, and 16 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Superior Industries International a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Superior Industries International is hold, with an average price target of $20.50.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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