Stoneridge (NYSE:SRI) Announces Earnings Results

Key Points

• Stoneridge reported quarterly EPS of ($0.75), missing consensus of $0.01 by $0.76, despite revenue of $160.85 million beating estimates of $139 million.
• The company announced two program wins totaling about $135 million of estimated lifetime revenue and drove margin expansion (adjusted gross margin up ~400 bps, adjusted operating margin up ~180 bps) with adjusted EBITDA of $2 million and a target of at least $5 million in structural cost reductions.
• Management reaffirmed full‑year guidance, raising revenue guidance by $20 million to $645–$670 million while keeping adjusted EBITDA at $20–$25 million, but warned that weak North American CV production, inflation, semiconductor and geopolitical risks persist.

Stoneridge (NYSE:SRI - Get Free Report) announced its quarterly earnings results on Thursday. The auto parts company reported ($0.75) earnings per share for the quarter, missing analysts' consensus estimates of $0.01 by ($0.76), FiscalAI reports. Stoneridge had a negative return on equity of 13.49% and a negative net margin of 11.94%.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 Price Performance

NYSE:SRI traded up $0.51 during trading hours on Thursday, reaching $7.57. 261,182 shares of the company were exchanged, compared to its average volume of 220,546. The company has a market capitalization of $213.85 million, a P/E ratio of -2.05 and a beta of 1.85. Stoneridge has a 1-year low of $4.24 and a 1-year high of $9.71. The company has a debt-to-equity ratio of 1.01, a current ratio of 2.30 and a quick ratio of 1.45. The business has a 50 day moving average of $6.29 and a 200 day moving average of $6.46.

Institutional Investors Weigh In On Stoneridge

A number of large investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC acquired a new stake in Stoneridge during the fourth quarter worth approximately $62,000. Empowered Funds LLC bought a new stake in Stoneridge during the fourth quarter worth $131,000. Quadrature Capital Ltd bought a new stake in Stoneridge during the fourth quarter worth $61,000. Man Group plc lifted its stake in Stoneridge by 8.1% during the fourth quarter. Man Group plc now owns 196,755 shares of the auto parts company's stock worth $1,139,000 after purchasing an additional 14,669 shares during the last quarter. Finally, Balyasny Asset Management L.P. bought a new stake in Stoneridge during the fourth quarter worth $92,000. Institutional investors and hedge funds own 98.07% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on SRI. Weiss Ratings reiterated a "sell (d-)" rating on shares of Stoneridge in a research note on Friday, March 27th. Barrington Research lowered Stoneridge from an "outperform" rating to a "market perform" rating in a research note on Monday, March 16th. Wall Street Zen lowered Stoneridge from a "buy" rating to a "hold" rating in a research note on Sunday, March 22nd. Finally, Zacks Research upgraded Stoneridge to a "hold" rating in a research note on Wednesday, March 18th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Stoneridge presently has an average rating of "Reduce" and an average price target of $16.00.

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.

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