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Sep 30, 2022
Stoneridge Q3 2022 Earnings Report
Stoneridge's performance reflected margin expansion driven by strong operating performance and continued revenue growth.
Key Takeaways
Stoneridge reported Q3 2022 sales of $226.8 million and EPS of $0.03. Adjusted sales were $214.0 million, a 4.0% increase over Q2, and adjusted EPS was $0.03, a $0.32 increase over Q2. The company is focused on continuous operating improvement and effective cost control, driving sequential revenue growth and margin expansion.
New program ramp-up and expansion, supported by improved material availability, drove revenue growth and significantly improved earnings performance.
The company continued to effectively offset incremental costs through pricing and supply chain actions, recognizing significant margin improvement.
Each segment drove sequential revenue growth and margin expansion during the quarter.
The company expects to continue to drive sequential revenue growth and margin expansion for the remainder of the year, despite anticipated material cost pressure and volatility in production schedules.
Revenue by Segment
Forward Guidance
The company reduced the midpoint of its 2022 adjusted revenue guidance by $10 million to $855 million and adjusted EPS guidance by $0.09 to a midpoint of ($0.29). Updated full-year midpoint guidance implies fourth quarter revenue of approximately $239 million and adjusted EPS of $0.24.
Positive Outlook
- Expecting continued end-market growth in 2023 as current forecasts are suggesting weighted average end-markets will grow by approximately 4% next year.
- Expect to outperform underlying end-markets as continue to reduce material constraints, launch new programs and ramp-up recently launched programs.
- Remain well positioned to drive long-term profitable growth.
- Expecting continued end-market growth.
- Creating a strong runway for continued growth and earnings expansion in 2023.
Challenges Ahead
- Reducing the midpoint of 2022 adjusted revenue guidance by $10 million to $855 million to reflect improved, but continued material constraints and current end-market demand.
- Reduction would result in reduced adjusted EPS expectations of approximately $0.07.
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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