Cooper-Standard Holdings (NYSE:CPS) skyrocketed in Friday trading after blasting past consensus estimates with its Q3 earnings report.
Sales were up 12.0% during the quarter to $736.0M vs. $695M consensus. The auto supplier said the year-over-year increase sales was primarily attributable to favorable volume and mix, sustainable price adjustments, inflation recoveries, and favorable foreign exchange, partially offset by the deconsolidation or divestiture of non-core businesses.
Gross profit jumped 176% during the quarter to $106.5M. Net income was $11.4M vs. -$32.6M a year ago. Adjusted EBITDA was $79.1M vs. $20.5M a year ago. Earnings per share of $0.65 compared favorably to the $1.90 loss per share from a year ago. The flip to profitability was primarily due to improved volume and mix, favorable price adjustments, and savings generated from lean manufacturing and purchasing initiatives, partially offset by higher interest expense, continuing inflationary pressure, including higher labor and energy costs, and unfavorable foreign exchange.
“We continued to leverage higher production volume, operating efficiency and further implementation of enhanced commercial agreements to drive strong margin improvements in the quarter,” said CEO Jeffrey Edwards. “We believe our investments in customer-focused technology and innovation have been key to recent operating improvement and will further position us for long-term growth and success,” he added.
Shares of CPS were up 45.15% at 11:24 a.m. to $18.48 vs. the 52-week trading range of $5.92 to $22.75.