Precision components maker NN Q3 sales miss estimates

Reuters
Oct 30
Precision components maker NN Q3 sales miss estimates

Overview

  • NN Q3 net sales decline 8.5%, missing analyst expectations

  • Adjusted loss per share for Q3 misses analyst expectations

  • Adjusted net loss for Q3 beats analyst expectations

Outlook

  • NN expects 2025 net sales between $420 mln and $440 mln

  • Company maintains 2025 adjusted EBITDA guidance at $53 mln to $63 mln

  • NN forecasts 2026 net sales growth and improved profitability

Result Drivers

  • POWER SOLUTIONS GROWTH - Segment grew 4.7% due to higher precious metal pass-through pricing

  • COST REDUCTION - Improved margins and operating income attributed to cost reduction initiatives

  • MOBILE SOLUTIONS RATIONALIZATION - Decline in sales due to rationalization of underperforming business and plants

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$103.9 mln

$111.77 mln (4 Analysts)

Q3 Adjusted EPS

Miss

-$0.01

$0.00667 (3 Analysts)

Q3 Adjusted EBITDA

Miss

$12.4 mln

$13.31 mln (4 Analysts)

Q3 Adjusted Income from Operations

$4 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for NN Inc is $6.00, about 68.7% above its October 28 closing price of $1.88

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nGNXNtBqF

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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.)

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