Superior Industries International Earnings Preview

Motley Fool Staff
Updated

Investors braced for a bumpy ride ahead of Superior Industries International's (NYS: SUP) earnings announcement as the company has wavered between beating and falling short of analyst predictions during the past fiscal year. The company will unveil its latest earnings on Friday, April 27. 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 eight 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 $216.3 million in revenue this quarter. That would represent a rise of 14.2% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.19 per share. Estimates range from $0.16 to $0.22.

What our community says:
CAPS All-Stars are solidly backing the stock, with 80.6% awarding it an "outperform" rating. The community at large concurs with the All-Stars, with 83% 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 profit has risen year-over-year by an average of 14.4% over the past five quarters. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 6.9 percentage points in the last quarter. Revenue rose 13.5% while cost of sales rose 22.7% to $198.8 million from a year earlier.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. Superior Industries International's gross margins, which reflect the total sales revenue retained after costs, have been dropping year-over-year for the last three quarters. See how Superior Industries International has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

8.3%

6.1%

9.4%

8.9%

Operating Margin

5.0%

2.9%

6.2%

5.4%

Net Margin

18.5%

2.0%

7.0%

4.2%

One final thing: If you want to keep tabs on Superior Industries International movements, and for more analysis on the company, make sure you add it to your Watchlist.

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