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Jun 30, 2020
Stoneridge Q2 2020 Earnings Report
Reported a decrease in sales due to the COVID-19 pandemic, but outperformed cash flow expectations through cost reduction actions and working capital management.
Key Takeaways
Stoneridge reported second-quarter results with sales of $99.5 million and a loss per share of ($0.81). Adjusted EPS was ($0.55). The company saw a decrease in sales across all segments due to the COVID-19 pandemic, but managed to outperform cash flow expectations through cost reduction actions and efficient working capital management.
Sales totaled $99.5 million, with a loss per share of ($0.81).
Adjusted EPS was ($0.55) for the second quarter.
Gross profit was $13.3 million, and adjusted gross profit was $14.4 million (14.5% of sales).
Operating loss was ($26.8) million, and adjusted operating loss was ($19.1) million ((19.2%) of sales).
Revenue by Segment
Forward Guidance
The company expects third-quarter revenue to be in line with the run-rate seen at the end of the second quarter and anticipates incremental contribution margins of approximately 35% relative to the second quarter. Signs of recovery are emerging, with 2021 production forecasts indicating 16% growth in weighted-average end markets.
Positive Outlook
- Third-quarter revenue expected to be in line with the end of Q2 run rate.
- Expecting incremental contribution margins of approximately 35% relative to the second quarter.
- Signs of recovery with 2021 production forecasts implying 16% growth in weighted-average end markets.
- New program launches are expected to create significant growth opportunities for the Company in 2021 and beyond.
- Stoneridge remains well positioned to capitalize on the industry megatrends.
Challenges Ahead
- Global COVID-19 pandemic impacting sales.
- Decreased sales across all segments in Q2.
- Adjusted operating margin was negative for all segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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