Stoneridge (NYSE:SRI) Issues Quarterly Earnings Results

Stoneridge (NYSE:SRI) released its earnings results on Thursday. The auto parts company reported ($0.75) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.76), FiscalAI reports. Stoneridge had a negative return on equity of 20.68% and a negative net margin of 15.24%.The business had revenue of $160.85 million for the quarter, compared to analyst estimates of $139.00 million.

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 Stock Performance

Shares of SRI opened at $7.65 on Friday. Stoneridge has a 12-month low of $4.36 and a 12-month high of $9.71. The stock has a market cap of $216.12 million, a P/E ratio of -1.74 and a beta of 1.85. The company has a current ratio of 2.30, a quick ratio of 1.45 and a debt-to-equity ratio of 1.01. The company has a 50-day moving average of $6.29 and a two-hundred day moving average of $6.46.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Ameriprise Financial Inc. increased its stake in shares of Stoneridge by 2.0% during the 3rd quarter. Ameriprise Financial Inc. now owns 93,729 shares of the auto parts company’s stock worth $714,000 after purchasing an additional 1,815 shares in the last quarter. Jane Street Group LLC lifted its position in shares of Stoneridge by 1.9% in the fourth quarter. Jane Street Group LLC now owns 115,259 shares of the auto parts company’s stock valued at $667,000 after acquiring an additional 2,178 shares in the last quarter. State Street Corp lifted its position in shares of Stoneridge by 2.6% in the fourth quarter. State Street Corp now owns 134,334 shares of the auto parts company’s stock valued at $778,000 after acquiring an additional 3,400 shares in the last quarter. Algert Global LLC boosted its stake in shares of Stoneridge by 19.8% during the third quarter. Algert Global LLC now owns 25,880 shares of the auto parts company’s stock valued at $197,000 after acquiring an additional 4,270 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in Stoneridge by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 317,846 shares of the auto parts company’s stock worth $1,841,000 after purchasing an additional 4,545 shares in the last quarter. 98.07% of the stock is owned by hedge funds and other institutional investors.

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.