Stoneridge, Inc.(NYSE: SRI) stock rose over 7.2% on March 1st, 2018 (as of 1:51PM EST; Source: Google finance). The group’s business backlog rose 14.9% in 2017 to almost $3.5 billion. The group’s segments are well-positioned to continue to deliver profitable growth in 2018. The group’s 2017 sales reached $824 million leading to an adjusted gross margin of 30.3% translating to an adjusted operating margin of 8.1%. The Adjusted EPS for the year was $1.57.
Net sales rose 20% yoy to 207.4 million, during the fourth quarter while adjusted operating income was $15.3 million or 7.4% of sales showing a 50% rise against pcp. Control Devices net sales reached $109.6 million rising over 6% on a quarter-over-quarter basis leading to a operating income of $17.3 million or 15.8% of sales. Electronics net sales rose 52% yoy of $84.6 million while PST’s net sales enhanced 9% yoy to $24.4 million. The group’s 2017 EPS was enhanced by $0.56 which represents EPS growth of 55% on revenue growth of 18.5%. The group continued to make improvements in gross and operating margins with increases of 170 basis points and 150 basis points, respectively. The group continued to focus on margin expansion via operational efficiency and an ongoing improvement.
Meanwhile, for 2018 the group’s guidance indicates a sales growth of 3%, as well as EBITDA margin rise of 140 basis points to a midpoint of 13%. The expect revenue to grow at two times to three times of their underlying markets over the business cycle. As per the midpoint of their 2018 guidance, the group sees 10.5% compound annual growth rate from 2016 to 2018 against over 4% compound annual growth rate in their underlying markets. In China, the group business backlog implies a compound annual growth rate of over 20% from 2016 to 2020. The adjusted operating income for 2018 is expected to be a midpoint of 9.5% relative to 8.1% last year. Adjusted EBITDA margin is expected to be at a midpoint 13% in 2018, an improvement of 140 basis points versus last year.