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Sep 30, 2020
Stoneridge Q3 2020 Earnings Report
Stoneridge's Q3 2020 results showed strong execution, with EPS of $0.25 and adjusted EPS of $0.18, driven by top-line growth exceeding expectations due to strong recovery across global end markets.
Key Takeaways
Stoneridge reported strong Q3 2020 results with sales of $175.8 million and EPS of $0.25. The company experienced top-line growth exceeding expectations due to strong recovery across global end markets, resulting in improved gross and operating margins.
Experienced top-line growth that exceeded expectations due to strong recovery across global end markets.
Improved gross and operating margins, resulting in an adjusted contribution margin of 35.8% relative to the second quarter.
Took several steps forward in the continued commercialization of MirrorEye®, including a pre-wire option with Daimler Trucks North America.
Expect continued ramp-up of MirrorEye® retrofit orders and pursuing pre-wire relationships with other OEMs.
Revenue by Segment
Forward Guidance
The company expects fourth quarter revenue to decline slightly relative to the third quarter, with adjusted earnings per share to a range of ($0.05) to $0.05. For 2021, the company expects revenue to exceed $715 million, an increase of at least 20% adjusted for the discontinued soot sensor business.
Positive Outlook
- Continued recovery with production forecasts implying 13.5% growth in weighted-average end markets.
- New program launches are expected to create significant growth opportunities for the Company in 2021 and beyond.
- Production forecast tailwinds based on current market conditions.
- Continued ramp-up of MirrorEye® retrofit programs.
- Launch of several new programs in 2021.
Challenges Ahead
- Expect fourth quarter revenue to decline slightly relative to the third quarter based on the continued stabilization of global production, offset by historical seasonality in Control Devices.
- Anticipate incremental expenses due to the reinstatement of certain wage and benefit programs and the normalization of other operating expenses.
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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