Superior Industries (SUP) Q2 Earnings Beat, '16 View Raised
Zacks Investment Research | Jul 28, 2016 06:23AM ET
Superior Industries International, Inc. (NYSE:SUP) reported second-quarter 2016 earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents. Moreover, earnings per share surged 85.7% from adjusted earnings of 28 cents recorded in the second quarter of 2015.
Earnings in the reported quarter benefited from higher shipment volume and better cost performance at the company’s manufacturing facilities, mainly driven by the new facility in Mexico which operated at higher utilization rates in the second quarter of 2016.
Revenues dipped 0.7% year over year to $182.7 million in the reported quarter but outpaced the Zacks Consensus Estimate of $176 million. The year-over-year decline in the top line was primarily due to lower aluminum price. Wheel unit shipments rose 13.2% to 3.1 million from 2.7 million units in the prior-year quarter.
Gross profit surged 48.3% to $29.5 million (16.2% of net sales) from $19.9 million (10.8%) in the prior-year quarter. Gross margin as of value added sales went up to 29.2% from 22.7% a year ago. The increase can be attributed to higher unit shipments and cost efficiency at the company’s manufacturing facilities, mainly driven by the new facility in Mexico which operated at higher utilization rates in the second quarter of 2016.
Selling, general and administrative expenses increased to $10 million in second-quarter 2016 from $8.9 million in the prior-year quarter. Operating income was $19.5 million (10.7% of sales) compared with $11 million (6% of sales) a year ago. Operating margin as a percentage of value added sales improved to 19.3% from 12.6% in the year-ago quarter.
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