Stoneridge (SRI) Q4 Earnings Beat Estimates, Revenues Miss

Zacks

Stoneridge Inc. SRI posted adjusted earnings of $6.64 million or 25 cents per share in the fourth quarter of 2014, rising significantly from $0.2 million or 1 cent per share in the same quarter of 2013 (excluding special items). Moreover, earnings per share surpassed the Zacks Consensus Estimate by 2 cents.

Revenues in the reported quarter went down 1.4% to $166.8 million, mainly due to lower sales in the PST business segment. Revenues marginally missed the Zacks Consensus Estimate of $168 million.

Annual Results

For 2014, Stoneridge reported adjusted earnings of 49 cents per share, down from 56 cents in the prior year (excluding special items). Earnings per share were in line with the Zacks Consensus Estimate.

Revenues inched up to $660.6 million from $659.5 million in 2013. However, the top line missed the Zacks Consensus Estimate of $712 million.

Financial Position

Stoneridge had cash and cash equivalents of $43 million as of Dec 31, 2014, down from $62.8 million as of Dec 31, 2013. The company’s long-term debt stood at $10.7 million as of Dec 31, 2014, which translates into a long-term debt-to-capitalization ratio of 10.5%. In comparison, as of Dec 31, 2013, long-term debt was $185 million while debt-to-capitalization ratio stood at 55.4%.

In 2014, the company’s net cash flow from operations was $19.8 million, down from $43.7 million in the prior year. Capital expenditures declined to $24.8 million from $25.3 million in 2013.

Zacks Rank

Stoneridge, a Zacks Rank #3 (Hold) company, designs and manufactures engineered electrical and electronic components, modules, and systems for the medium and heavy-duty truck, agricultural, automotive, and off-highway vehicle markets, primarily in North America and Europe.

Better-ranked automobile stocks include Superior Industries International, Inc. SUP, Tata Motors Limited TTM and Wabash National Corp. WNC, all sporting a Zacks Rank #1 (Strong Buy).

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