Stoneridge (NYSE:SRI) Posts Earnings Results, Misses Estimates By $0.76 EPS

Stoneridge (NYSE:SRI) posted its earnings results on Thursday. The auto parts company reported ($0.75) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.76), FiscalAI reports. The company had revenue of $160.85 million during the quarter, compared to the consensus estimate of $139.00 million. Stoneridge had a negative return on equity of 13.49% and a negative net margin of 11.94%.

Here are the key takeaways from Stoneridge’s conference call:

• Company announced two major new program wins totaling approximately $135 million of estimated lifetime revenue — an OEM integrated MirrorEye program in North America (~$70M) and a next?generation electronic controls program in Europe (~$65M) — reinforcing product momentum and backlog.
• Operational execution drove margin expansion with adjusted gross margin up ~400 basis points, adjusted operating margin up ~180 basis points, and adjusted EBITDA of $2 million for the quarter, while management is targeting at least $5 million of structural cost reductions this year.
• Balance sheet and cash improvements: proceeds from the sale of Control Devices were used to reduce net debt by about $42 million, inventory was cut ~$16 million year?over?year, and a refinancing process to replace the credit facility is underway targeting completion by November.
• Full?year guidance was reaffirmed but updated for contract manufacturing revenue recognition, raising revenue guidance by $20 million to $645–$670 million while keeping adjusted EBITDA guidance unchanged at $20–$25 million and projecting improved EBITDA in H2.
• Market headwinds persist: North American commercial vehicle production remains at the bottom of the cycle, IHS forecasts for the company’s weighted OEM market were cut to ~1.8% growth, and management flagged ongoing inflationary, semiconductor and geopolitical risks.

Stoneridge Price Performance

Shares of NYSE SRI traded up $0.51 during mid-day trading on Thursday, hitting $7.57. 261,182 shares of the stock traded hands, compared to its average volume of 220,546. The company has a debt-to-equity ratio of 1.01, a current ratio of 2.30 and a quick ratio of 1.45. Stoneridge has a twelve month low of $4.24 and a twelve month high of $9.71. The company has a market cap of $213.85 million, a PE ratio of -2.05 and a beta of 1.85. The firm has a 50 day simple moving average of $6.29 and a two-hundred day simple moving average of $6.46.

Institutional Investors Weigh In On Stoneridge

Several hedge funds have recently modified their holdings of the company. 22NW LP raised its position in Stoneridge by 4.1% during the 4th quarter. 22NW LP now owns 2,192,764 shares of the auto parts company’s stock worth $12,696,000 after purchasing an additional 87,164 shares during the last quarter. Vanguard Group Inc. raised its position in Stoneridge by 3.5% during the 3rd quarter. Vanguard Group Inc. now owns 1,514,480 shares of the auto parts company’s stock worth $11,540,000 after purchasing an additional 51,263 shares during the last quarter. Federated Hermes Inc. raised its position in Stoneridge by 4.4% during the 4th quarter. Federated Hermes Inc. now owns 1,110,619 shares of the auto parts company’s stock worth $6,430,000 after purchasing an additional 47,135 shares during the last quarter. Millennium Management LLC raised its position in Stoneridge by 3.0% during the 1st quarter. Millennium Management LLC now owns 954,577 shares of the auto parts company’s stock worth $4,382,000 after purchasing an additional 28,037 shares during the last quarter. Finally, AQR Capital Management LLC raised its position in Stoneridge by 29.7% during the 2nd quarter. AQR Capital Management LLC now owns 691,962 shares of the auto parts company’s stock worth $4,871,000 after purchasing an additional 158,492 shares during the last quarter. Institutional investors and hedge funds own 98.07% of the company’s stock.

Wall Street Analysts Forecast Growth

SRI has been the topic of a number of research analyst reports. Wall Street Zen lowered shares of Stoneridge from a “buy” rating to a “hold” rating in a research report on Sunday, March 22nd. Zacks Research raised Stoneridge to a “hold” rating in a report on Wednesday, March 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of Stoneridge in a report on Friday, March 27th. Finally, Barrington Research downgraded Stoneridge from an “outperform” rating to a “market perform” rating in a report on Monday, March 16th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $16.00.

About Stoneridge

Stoneridge, Inc (NYSE: SRI) is a global developer and manufacturer of highly engineered electrical and electronic components for the automotive and commercial vehicle markets. The company’s product offerings span a range of safety, convenience and control systems, delivering tailored solutions that help original equipment manufacturers (OEMs) meet increasingly stringent regulatory and performance requirements.

Among Stoneridge’s core products are rearview and side-view mirror systems, camera-based advanced driver assistance systems (ADAS) and interior and exterior lighting solutions.