Actionable Stock to Rock: Commercial Vehicle Group, Inc. (NASDAQ: CVGI)

On 07 Jan 2020, Commercial Vehicle Group, Inc. (NASDAQ: CVGI) changed -0.33% to recent value of $6.07. The stock transacted 209734 shares during most recent day however it has an average volume of 176.42K shares. It spotted trading -37.87% off 52-week high price. On the other end, the stock has been noted 6.21% away from the low price over the last 52-weeks.

Commercial Vehicle Group, Inc (CVGI) recently stated financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Results

Third quarter 2019 revenues were $225.4M contrast to $225.0M in the previous year period, a raise of 0.2%. The increase in revenues period-over-period reflects higher heavy- and medium-duty truck production in North America as well as $2.5M of additional revenue from the FSE Acquisition, partially offset by a production decrease in the Asia Pacific construction equipment market. Foreign currency translation adversely influenced third quarter 2019 revenues by $2.1M, or by 0.9% when contrast to the previous year period.

Operating income for the third quarter 2019 was $13.2M contrast to $16.2M in the previous year period. The decrease in operating income was due primarily to inflationary pressure on material and labor costs, and a raise in selling, general and administrative (“SG&A”) expenses. Cost control and cost recovery actions reduced the impact on gross profit of these cost pressures. A new statutorily higher minimum wage in Mexico affecting the region encompassing our wire harness facility in Agua Prieta, Mexico (the “Border Minimum Wage”), a troubled supplier and costs associated with manufacturing investments adversely influenced results in the third quarter of 2019 by about $1.1M. Regarding the increase in SG&A expenses, the third quarter of 2019 included $0.9M in one-time costs associated with the FSE Acquisition. In addition, the planned reorganization of the Company to, among other things, develop a platform from which to pursue business and corporate development activities gave rise to an approximate $0.7M increase in costs in the quarter contrast to the previous year period.

Interest and other expense were $3.8M and $3.4M for the three months ended September 30, 2019 and 2018, respectively. The increase is primarily a result of the mark-to-market impact on our interest rate swap contracts, partially offset by lower interest expense.

Net income was $8.5M for the third quarter 2019, or $0.28 per diluted share, contrast to net income of $12.6M in the previous year period, or $0.41 per diluted share.

At September 30, 2019, the Company had liquidity of $109.2M: $38.7M of cash and $70.5M of availability from our asset-based revolver.  There were no borrowings on our asset-based revolver at September 30, 2019.

Third Quarter 2019 Results

Revenues for the Electrical Systems Section in the third quarter 2019 were $131.4M contrast to $128.2M for the previous year period, a raise of 2.5%, due primarily to revenues from the FSE Acquisition in the quarter. Foreign currency translation adversely influenced third quarter 2019 revenue by $0.7M, or by 0.5% when contrast to the previous year period.

Operating income for the third quarter 2019 was $14.6M contrast to operating income of $14.3M in the previous year period. The increase in operating income period over period is primarily attributable to higher revenues partially offset by the impact of the Border Minimum Wage, a troubled supplier and costs associated with establishing additional manufacturing capacity. The net impact of the Border Minimum Wage on the third quarter of 2019 was about $0.2M. A number of actions, including price adjustments on certain products, are underway to reduce the impact of the law. A troubled supplier adversely influenced costs in the third quarter of 2019 by about $0.6M. Costs associated with manufacturing investments in our global wire harness and North American trim businesses adversely influenced third quarter results by about $0.3M. SG&A expenses increased for the three months ended September 30, 2019 contrast to the three months ended September 30, 2018 due primarily to spending on planned growth initiatives.

CVGI has a gross margin of 13.80% and an operating margin of 6.80% while its profit margin remained 3.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 322.00% for this year while earning per share for the next 5-years is expected to reach at 12.00%. The company has 32.1M of outstanding shares and 30.16M shares were floated in the market. According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -8.24% from the mean of 20 days, -13.17% from mean of 50 days SMA and performed -17.98% from mean of 200 days price. Company’s performance for the week was -3.80%, -12.66% for month and YTD performance remained -4.41%.

 

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