Superior Industries International Earnings: Here’s Why Investors are Ambivalent Now

Superior Industries International, Inc. (NYSE:SUP) delivered a profit and met 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.

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Superior Industries International, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 28% to $0.18 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 1.95% to $206.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Superior Industries International, Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company missed the mean analyst estimate of $0.18. It beat the average revenue estimate of $203.85 million.

Quoting Management: “Ongoing strength of the auto market, combined with Superior’s capacity limitations, continues to create operating challenges, especially at our largest manufacturing facility in the U.S.,” said Steven J. Borick, Chairman, Chief Executive Officer and President. “We currently are making significant enhancements to our existing operations, with an objective of improving process capability and operating efficiencies, and are encouraged that compared to the fourth quarter of 2012, our income performance improved for the first quarter despite lower unit sales volume.”

Key Stats (on next page)…

Revenue decreased 1.72% from $210.02 million in the previous quarter. EPS increased 80% from $0.10 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.27 to a profit $0.2. For the current year, the average estimate has moved down from a profit of $1 to a profit of $0.81 over the last ninety days.

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