The 10-second takeaway
For the quarter ended June 30 (Q2), Tower International met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins expanded, net margins dropped.
Tower International logged revenue of $555.9 million. The four analysts polled by S&P Capital IQ expected to see net sales of $557.5 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $643.9 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 $1.03. The five earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. Non-GAAP EPS of $1.03 for Q2 were 23% higher than the prior-year quarter's $0.84 per share. GAAP EPS were -$2.22 for Q2 against $0.34 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 12.5%, 80 basis points better than the prior-year quarter. Operating margin was 6.3%, 10 basis points better than the prior-year quarter. Net margin was -8.1%, 920 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $511.2 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $2.14 billion. The average EPS estimate is $1.67.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tower International is outperform, with an average price target of $21.25.
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