Stoneridge (NYSE:SRI) Releases Earnings Results, Misses Estimates By $0.76 EPS

Stoneridge (NYSE:SRI) issued its quarterly earnings results on Thursday. The auto parts company reported ($0.75) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.76), FiscalAI reports. The business had revenue of $160.85 million for the quarter, compared to analyst estimates of $139.00 million. Stoneridge had a negative return on equity of 13.49% and a negative net margin of 11.94%.

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 Trading Up 7.3%

SRI opened at $7.57 on Friday. Stoneridge has a 1-year low of $4.24 and a 1-year high of $9.71. The company has a current ratio of 2.30, a quick ratio of 1.45 and a debt-to-equity ratio of 1.01. The company has a market cap of $213.89 million, a P/E ratio of -2.05 and a beta of 1.85. The company has a fifty day moving average price of $6.29 and a two-hundred day moving average price of $6.46.

Wall Street Analyst Weigh In

SRI has been the topic of a number of recent research reports. Barrington Research lowered shares of Stoneridge from an “outperform” rating to a “market perform” rating in a report on Monday, March 16th. Wall Street Zen lowered shares of Stoneridge from a “buy” rating to a “hold” rating in a report on Sunday, March 22nd. Zacks Research upgraded shares of Stoneridge to a “hold” rating in a report on Wednesday, March 18th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Stoneridge in a report on Friday, March 27th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $16.00.

Institutional Investors Weigh In On Stoneridge

Several hedge funds and other institutional investors have recently bought and sold shares of SRI. Arrowstreet Capital Limited Partnership increased its stake in Stoneridge by 285.8% in the third quarter. Arrowstreet Capital Limited Partnership now owns 518,105 shares of the auto parts company’s stock valued at $3,948,000 after purchasing an additional 383,805 shares in the last quarter. AQR Capital Management LLC increased its stake in Stoneridge by 213.7% in the first quarter. AQR Capital Management LLC now owns 533,470 shares of the auto parts company’s stock valued at $2,449,000 after purchasing an additional 363,407 shares in the last quarter. Russell Investments Group Ltd. increased its stake in Stoneridge by 50.0% in the fourth quarter. Russell Investments Group Ltd. now owns 575,670 shares of the auto parts company’s stock valued at $3,333,000 after purchasing an additional 191,953 shares in the last quarter. Marshall Wace LLP increased its stake in Stoneridge by 186.7% in the second quarter. Marshall Wace LLP now owns 293,987 shares of the auto parts company’s stock valued at $2,070,000 after purchasing an additional 191,444 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in Stoneridge by 55.9% in the first quarter. Goldman Sachs Group Inc. now owns 490,160 shares of the auto parts company’s stock valued at $2,250,000 after purchasing an additional 175,736 shares in the last quarter. 98.07% of the stock is owned by institutional investors.

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.