Accuride New Earnings: Here’s Why the Stock is Falling Now

Accuride Corporation New (NYSE:ACW) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 10.66%.

Accuride Corporation New Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.11 in the quarter versus EPS of $-0.02 in the year-earlier quarter.

Revenue: Decreased 21.39% to $211.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Accuride Corporation New reported adjusted EPS loss of $0.11 per share. By that measure, the company beat the mean analyst estimate of $-0.14. It beat the average revenue estimate of $200.32 million.

Quoting Management: President and Chief Executive Officer Rick Dauch said, “Second quarter revenues were stronger, as the North American commercial vehicle industry began to return to healthier volumes. Results in our core businesses reflected higher OEM production and a strong spring selling season in the aftermarket. The streamlining of our manufacturing footprint and investments to restore Accuride`s position as a dependable supplier to customers are substantially complete and aiding the performance of each business unit. Our performance during the quarter also benefitted from targeted actions to reduce our cost structure in line with current conditions and more effectively manage our trade working capital, which now represents 8.2 percent of annualized sales. In addition, we will enter the second half with a healthier balance sheet and improved liquidity due to the securing of our new $100 million ABL Credit Facility in July. This, together with our reduced cost structure and stronger operational metrics, positions us to profitably convert on our share of volume during the expected second-half upturn in the North American commercial vehicle industry.”

Key Stats (on next page)…

Revenue increased 9.79% from $192.46 million in the previous quarter. EPS increased to $-0.11 in the quarter versus EPS of $-0.34 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.05 and has not changed. For the current year, the average estimate has moved up from a loss of $0.50 to a loss of $0.40 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)