CLEVELAND, OHIO - Park-Ohio Holdings Corp. (NASDAQ: NASDAQ:PKOH) reported a slight miss in fourth-quarter earnings per share (EPS) but managed to edge past revenue expectations. The company posted an EPS of $0.54, which was $0.02 lower than the analyst estimate of $0.56. However, revenue for the quarter was $389 million, surpassing the consensus estimate of $386.45 million.
The fourth quarter saw a 2% increase in net sales from continuing operations compared to the same period last year, signaling modest growth amidst challenging conditions, including a United Auto Workers strike that negatively impacted several OEM customer plants.
Despite this, Park-Ohio delivered a strong performance with a significant turnaround from a loss of $0.58 per diluted share a year ago to a gain of $0.54 per diluted share.
Matthew V. Crawford, Chairman and Chief Executive Officer, attributed the company's robust full-year results to record net sales across all business segments and an 11% increase in net sales from continuing operations, reaching $1.7 billion.
Adjusted EPS from continuing operations soared by 74% to $3.07 per diluted share, compared to $1.76 in the previous year. Crawford praised the team's effort and the company's strategic positioning, which led to increased gross margins and strong operating cash flow.
Looking ahead to 2024, Park-Ohio anticipates mid-single digit revenue growth year-over-year, driven by strong demand in Supply Technologies and Assembly Components, along with a solid backlog in Engineered Products. The company also expects an improvement in EPS and EBITDA, indicating a positive outlook for the coming year.
Park-Ohio's financial health was further bolstered by the completion of the sale of its Aluminum Products business, which contributed to a strong liquidity position and a significant reduction in debt. The divestiture is part of the company's strategy to streamline operations and focus on its core competencies.
Investors and analysts will be watching closely to see if Park-Ohio can maintain its momentum and deliver on its optimistic outlook for 2024. The company's full-year results and forward-looking statements suggest a continued focus on operational excellence and profitability improvements.
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