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On Dec 11, we issued an updated research report on Superior Industries International, Inc. (NYSE:SUP) , the leading aluminum wheel manufacturer.
The Zacks Consensus Estimate for quarterly earnings has moved down 21.9% to 25 cents per share over the past thirty days. Also, currently the company has a VGM Score of D.
On Nov 9, Superior Industries reported adjusted loss of 2 cents per share in third-quarter 2017. The Zacks Consensus Estimate for earnings was 36 cents. In fact, in three out of the trailing four quarters, the company missed the Zacks Consensus Estimate, with an average miss ratio of 26%. However, in third-quarter 2017, revenues came in at $331.4 million, higher than $175.6 million in the year-ago quarter and above the Zacks Consensus Estimate of $316 million.
During third-quarter 2017, selling, general and administrative (SG&A) expenses flared up to $18.1 from $5.7 million in the prior-year quarter. In the first nine months of 2017, SG&A expenses rose significantly year over year. This is due to the inclusion of four months of European operations due to the acquisition of UNIWHEELS. This trend is likely to continue in near future. Apart from the rising expense worry, the company is also exposed to volatility in energy prices. Gross margin is expected to be under pressure for the rest of 2017.
The company has underperformed the industry it belongs to in the last six months. During this period, the company’s share price lost 20.1% while the industry grew 13.4%.
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