The 10-second takeaway
For the quarter ended March 31 (Q1), Tower International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Margins expanded across the board.
Tower International reported revenue of $534.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $519.8 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $617.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The five earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. Non-GAAP EPS of $0.32 for Q1 were 39% higher than the prior-year quarter's $0.23 per share. GAAP EPS were $0.12 for Q1 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.9%, 120 basis points better than the prior-year quarter. Operating margin was 4.5%, 110 basis points better than the prior-year quarter. Net margin was 0.5%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $552.6 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $1.66.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tower International is outperform, with an average price target of $13.75.
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