The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stoneridge missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins improved.
Stoneridge logged revenue of $186.0 million. The three analysts polled by S&P Capital IQ expected revenue of $195.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $160.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.32. The three earnings estimates compiled by S&P Capital IQ forecast $0.22 per share on the same basis. GAAP EPS of $1.56 for Q4 were much higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.4%, 480 basis points worse than the prior-year quarter. Operating margin was -1.4%, 490 basis points worse than the prior-year quarter. Net margin was 20.7%, 1,790 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $244.1 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $963.9 million. The average EPS estimate is $1.11.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 83 members out of 103 rating the stock outperform, and 20 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Stoneridge a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stoneridge is buy, with an average price target of $14.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.