Overview
Automotive security provider's fiscal Q2 sales grew 6% yr/yr
Net income for fiscal Q2 rose compared to prior year period
Company continued restructuring actions expected to save $3.4 mln annually
Outlook
Company expects softer U.S. automotive production market in second half of fiscal 2026
Company aims to enhance productivity and invest in future vehicle access solutions
Result Drivers
SALES GROWTH - Sales increased 6% to $137.5 mln, driven by pricing, new program launches, and customer inventory builds
GROSS MARGIN IMPROVEMENT - Gross margin expanded to 16.5% from 13.2% due to pricing actions and higher production volumes
RESTRUCTURING SAVINGS - Restructuring actions, including early retirement program, expected to save $3.4 mln annually
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $137.53 mln | $132.29 mln (2 Analysts) |
Q2 EPS | $1.20 | ||
Q2 Net Income | $5.64 mln | ||
Q2 Gross Profit | $22.72 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Strattec Security Corp is $89.00, about 1.9% above its February 4 closing price of $87.31
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBw8h4Twja
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)