Shares of Cooper-Standard (CPS 4.10%) fell 26.1% on Friday after the sealing and fluid-handling systems company announced disappointing quarterly results.
Cooper Standard grew despite headwinds
For its fourth-quarter 2023, Cooper Standard's revenue grew 3.7% year over year to $673.6 million, translating to an adjusted (non-GAAP) net loss of $31.1 million, or $1.79 per share. By comparison, most analysts expected a much narrower net loss of $0.79 per share on revenue closer to $693 million.
Trending toward the bottom line, Cooper Standard delivered adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $27.6 million, or roughly 4.1% of revenue. Cooper Standard's top-line growth was held back by both inflationary pressure and lost production volume related to work stoppages associated with the United Auto Workers union's strike, as well as the divestiture of non-core businesses over the past year.
Still, Cooper Standard Chairman and CEO Jeffrey Edwards lauded making "strong improvements as a company in 2023," thanking employees for their hard work and customers for "continued trust and support."
What's next for Cooper Standard shareholders?
For the full-year 2024, Cooper Standard issued guidance for revenue in the range of $2.8 billion to $2.9 billion, roughly in line with Wall Street's consensus estimates and compared to $2.82 billion in 2023. Cooper Standard also called for adjusted EBITDA of $180 million to $210 million in 2024, up from $167.1 million last year.
In the end, Cooper Standard did well to control the factors of its business that remain within its control. But given its relative underperformance to end the year, it's hardly surprising to see the stock pulling back in response today.
