Extremely Informative Stock: Spartan Motors, Inc.’s (NASDAQ:SPAR)

On 23 August 2k19, Spartan Motors, Inc.’s (NASDAQ:SPAR) stock showed the plunged by -2.80% during the normal trading session on Friday and reaching a 52-week high of -28.37% during the day while it closed the day at $11.46. The stock last traded volume of 0.12 million shares was it’s an average volume of 0.21 million shares.

Spartan Motors, Inc. (SPAR) recently stated operating results for the 2nd quarter ending June 30, 2k19.

2nd quarter 2k19 Highlights
For the 2nd quarter of 2k19 contrast to the 2nd quarter of 2k18:

  • Sales increased $64.0M, or 34.8%, to $247.9M, from $184.0M.
  • Net income was $3.5M, or $0.10per share, contrast to $3.7M, or $0.11 per share.
  • Adjusted net income improved $0.8M, or 18.9%, to $5.1M, or $0.15per share, from $4.3M, or $0.12 per share.
  • Adjusted EBITDA increased 6.8% to $9.5M, or 3.8% of sales, from $8.9M, or 4.8% of sales.
  • Consolidated backlog at June 30, 2k19, not including the one-time multi-year USPS truck body order, totaled $465.8M, up $146.0M, or 45.7%, contrast to $319.8Mat June 30, 2k18. The increase was primarily driven by strong demand for last mile delivery vehicles.
  • Purchased the assets of General Truck Body in Southern California, expanding its vehicle product line capabilities and footprint to provide coast-to-coast coverage.
  • Released Detroit Truck Manufacturing (DTM), a vertically integrated supplier of fabricated aluminum cabs for Spartan fire trucks providing greater flexibility and cost structure optimization. Included in the 2nd quarter 2k19 operating results is $0.8M, or $0.02per share, of start-up costs relating to DTM. This compares to $0.3M, or $0.01 per share, for the same period a year ago.
  • Designated Todd A. Heavin, a seasoned and proven multi-site operations and lean manufacturing leader with important Tier 1 automotive supplier experience, as Chief Operating Officer.

Second Half 2k19 Outlook – Raising Guidance
“Spartan’s first-half revenue and earnings reflect our continuing operational initiatives to enhance efficiencies and drive profitability across each business unit,” stated Rick Sohm, Chief Financial Officer of Spartan Motors.  “These internal initiatives combined with the underlying health of our core markets and product innovation that drives top-line growth give us confidence for the remainder of 2k19.

“We expect to see stronger year-over-year revenue and profitability growth in the second half of 2k19, driven primarily by last mile delivery vehicle orders.  These positive factors allow us to increase our mid-point EPS guidance by 20% for the rest of the year.”

The Company now expects financial results for 2k19 as follows:

  • Revenue midpoint up 10% to a range of $960.0- $990.0M from $865.0 – $905.0M
  • Net income midpoint up 20% to a range of $24.1- $26.4M from $19.5 – $22.6M
  • Adjusted EBITDA midpoint up 14% to a range of $43.3- $46.2M from $37.1 – $41.1M
  • Earnings per share midpoint up 20% to a range of $0.68- $0.75 from $0.56 – $0.64, assuming about 35.3M shares outstanding
  • Adjusted earnings per share midpoint up 21% to a range of $0.70- $0.77 from $0.57 – $0.65

“Our planned focus in the first half of the year delivered increased revenue and solid profitability to serve as a foundation for our long-term planned growth initiatives,” concluded Adams.  “The profitable growth achieved in the 2nd quarter, together with improving backlogs driven by last mile delivery demand, instills confidence to increase our earnings guidance for the full year.  With recent consumer wins and ongoing efforts to build our business in new and existing market sections, our team will continue to drive long-term profitable growth for Spartan Motors and its shareholders.”

The Corporation has PEG ratio of 1.69 and price to cash ratio of 23.27. Net profit margin of the firm was recorded at 1.30% and operating profit margin was calculated at 1.50% while gross profit margin was measured as 10.80%. Beta factor, which measures the riskiness of the security, was registered at 1.48.

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