Superior Industries Posts Lower-Than-Feared 4Q Loss; Shares Gain 15%


Shares of Superior Industries International gained 14.7% on Friday after the supplier of aluminum wheels reported a 4Q loss that was narrower than the Street’s expectations. Meanwhile, 4Q revenues came in ahead of consensus estimates.

Superior Industries (SUP) reported a 4Q loss of $0.05 per share, compared to the Street’s expectations for a loss of $0.11. Notably, the company reported a loss of $4.25 per share in the year-ago period. The improvement came on the back of a higher top-line and greater gross and operating profits.

Meanwhile, the company’s revenues of $338 million grew about 9% year-over-year and also topped consensus estimates of $314 million. Value-added sales (adjusted for foreign exchange) increased 12%, driven by “the ongoing portfolio shift to larger diameter wheels with more premium content.” Adjusted EBITDA grew 24% year-over-year due to a favorable product mix. (See Superior Industries stock analysis on TipRanks)

As for 2021, the company projects revenues in the range of $1.30-$1.37 billion. Analysts were anticipating 2021 revenues of $1.32 billion.

Following the results, Barrington analyst Gary Prestopino said, “Guidance for 2021 is within our range our expectations that included net sales of $1.3 billion, Value-Added Sales of $756 million, adjusted EBITDA of $169 million and units shipped of 17.5 million.” In a note to investors, the analyst added, “Guidance is anticipating significant growth in adjusted EBITDA.”

Prestopino maintained a Buy rating on the stock and raised the stock’s price target from $7 to a range of $10-$15, the mid-point of which comes to $12.50 (90.6% upside potential). Shares have skyrocketed over 173% over the past 12 months.

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