The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tower International beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins improved across the board.
Tower International booked revenue of $614.7 million. The six analysts polled by S&P Capital IQ expected to see a top line of $596.8 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $541.6 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 $0.33. The one earnings estimate compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS were $0.33 for Q4 compared to -$1.18 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 11.1%, 130 basis points better than the prior-year quarter. Operating margin was 7.0%, 160 basis points better than the prior-year quarter. Net margin was 1.1%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $574.6 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $0.32.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tower International is outperform, with an average price target of $19.17.
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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.