Tower International Update: Europe Ops Non-Sale Is Disappointing, But The Stock Is Now Far Too Cheap
Jeremy Raper • 86 Comments
Jeremy Raper • 86 Comments
Tower International: No Sale, No Worries?
Wed, Aug. 31, 10:26 AM
- U.S. auto sales are expected to show a decline of 2% to 5% for August amid a dialing back of discounting activity, according to the range of forecasts from Kelley Blue Book, Edmunds, J.D. Power, and LMC Automotive. General Motors is poised to report a loss of market share as its plan to cut out fleet sales impacts volume.
- Bloomberg estimates the seasonally adjusted selling rate for the month will be 17.2M, down from 17.9M last month.
- The sales dip isn't necessarily a bottom line drag for the sector due to reduced discounting and the increasing mix of higher-profit SUVs and trucks. But higher profit hasn't lifted automaker stocks this year, with the group having trouble gaining traction and trading with low forward PE multiples (GM 5.5, Ford 6.8, Honda 10.5, Toyota 10.9).
- Auto parts stocks (LEA, TEN, BWA, DAN, MPAA, CPS, DLPH, AXL, TOWR, ACW, FENX, MTOR, THRM, SMP, ALV, MOD, SRI) will be on watch tomorrow when the reports roll in as the sector frequently sees some extra volatility on days U.S. auto sales are disclosed.
- Related stocks: GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BMWYY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, TSLA, OTC:HYMLF, OTCPK:FUJHY, RACE.
Tue, Aug. 9, 10:46 AM
- Motorcar Parts of America (MPAA +16.6%) rallies after a solid Q2 earnings beat.
- Cooper-Standard Holdings (CPS +5.3%) is higher after catching a bullish initiation from Seaport Global Securities at a Buy rating.
- The boutique firm also sets Delphi Automotive (DLPH +0.6%) at Buy.
- Other sector movers on the day include Accuride (ACW +3.6%), American Axle & Manufacturing (AXL +2.1%), Autoliv (ALV +1.4%), and Tower International (TOWR +1.4%).
Tue, Jul. 26, 12:00 PM
Tue, Jul. 26, 8:03 AM
Mon, Jul. 25, 5:30 PM
- ABG, ACW, AHGP, AKS, ALLY, AOS, ARLP, ASTE, ATI, AUDC, AVY, AXE, AXTA, BAX, BEAV, BP, BPOP, CAT, CHKP, CIGI, CNC, CNHI, CNX, CPLA, CSL, CTG, CVLT, CYNO, DD, DTE, EEFT, EXAS, FBC, FCH, FCX, FELE, FIS, FMER, GPK, HOT, HUBB, HZO, ICLR, JBLU, JNS, KEY, KKR, LLY, LPT, MAS, MBLY, MCD, MDXG, MMM, NCI, NEO, NLSN, NORD, PCAR, PCH, RAI, RDWR, SAH, SIR, SIRI, ST, TGNA, TNC, TOWR, TROW, UA, USG, UTX, VLO, VZ, WAT, WDR, WWW, XRS
Fri, Jul. 22, 1:02 PM
Mon, Jun. 20, 7:46 AM
- Tower International (NYSE:TOWR) board authorizes to repurchase up to $100M of the company's issued and outstanding common stock from time to time in the open market. The time period for the buyback is open-ended.
- "In view of the Company's previously disclosed strong earnings and cash-flow outlook, in combination with a decline in our stock price to a point significantly below our view of intrinsic value, we believe stock repurchase represents a prudent and appropriate way to opportunistically deploy capital in a highly accretive and low-risk manner," said President and CEO Mark Malcolm.
- The company plans to release Q2 results in late July. Currently, revenue estimated to be slightly lower than prior guidance for Q2 and FY2016. Earnings are expected to exceed Q2 guidance based on favorable calendarization and other factors; FY2016 earnings and cash flow are expected to be consistent with prior guidance.
- Press Release
Wed, Jun. 1, 10:14 AM
- Auto parts stocks are under pressure after the Detroit Three all showed a slowing U.S. sales trend in May.
- The month included two fewer selling days which impacted the unadjusted tally, although demand for passenger cars in particular still came in weak.
- Notable decliners include BorgWarner (BWA -3.3%), Tower International (TOWR -4%), American Axle & Manufacturing (AXL -2.4%), Lear (LEA -2.5%), Delphi Automotive (DLPH -2.4%), and Dana Holding (DAN -1.8%).
Thu, Apr. 28, 8:09 AM
Wed, Apr. 27, 5:30 PM
- AB, ABBV, ACOR, ADP, AEP, AET, AIT, ALKS, ALLE, ALXN, AME, APD, ASPS, AUO, AVT, AXTA, BC, BCOR, BG, BLL, BMS, BMY, BOFI, BWA, BWEN, BXLT, BZH, CAB, CAH, CBG, CCE, CELG, CHTR, CIT, CL, CLF, CLFD, CME, CMS, COMM, COP, COR, CRCM, CRI, CRR, CSH, CVI, CVRR, CWT, CY, DBD, DFT, DLX, DNKN, DOW, DPZ, EME, EPD, EQM, EQT, F, FCFS, FCN, GEO, GLOP, GNC, GOV, GTLS, GWR, HAR, HEES, HHS, HMC, HUN, I, IDA, IDCC, INGR, INSY, INT, IPGP, IQNT, IRDM, IRM, ITC, ITCI, IVC, IVZ, KERX, LANC, LBY, LKQ, LVLT, MA, MD, MDP, MHO, MINI, MITK, MJN, MMC, MO, MPC, MPLX, MSCI, MTH, NEE, NEWM, NOV, OAK, ODFL, ORI, OSK, PF, PJC, POT, PPL, PRLB, PTEN, QSR, RGS, RTIX, RTN, RUTH, SABR, SCG, SEE, SFE, SIRI, SNAK, SNE, SPB, SPIL, SQNS, TFX, THRM, TMO, TOWR, TPX, TWC, TZOO, UAN, UBSI, UFS, UPS, UTHR, VA, VAC, VC, VIAB, VIVO, WCC, WM, WNS, WST, XRS, YNDX, ZBH
Fri, Apr. 22, 1:01 PM
Thu, Feb. 11, 8:04 AM
- Tower (NYSE:TOWR): Q4 EPS of $0.67 beats by $0.04.
- Revenue of $494M (-1.7% Y/Y) beats by $4.7M.
Fri, Jan. 29, 11:13 AM
- Tower (NYSE:TOWR) declares $0.10/share quarterly dividend, in line with previous.
- Forward yield 1.77%
- Payable Feb. 29; for shareholders of record Feb. 10; ex-div Feb. 8.
Wed, Jan. 13, 12:44 PM
- Auto parts stocks are sliding with a number of companies issuing guidance below expectations. Some of the soft reads are being delivered at the Deutsche Bank 2015 Global Auto Industry Conference in progress.
- Anxiety has increased over the last week that the U.S. auto market may be at a volume peak.
- Decliners include American Axle & Manufacturing (AXL -15%), Tower International (TOWR -7%), Tenneco (TEN -6.8%), Modine Manufacturing (MOD -4.9%), Lear Corp. (LEA -3.7%), and Visteon (VC -3.8%).
Nov. 10, 2015, 11:48 AM
- Tower International (TOWR +4.5%) says it is exploring the potential sale of its European division, with a decision to sell or retain the business expected in Q1 2016, as it looks to unlock more value for its stockholders.
- The automotive parts maker says a sale could boost its stock price, strengthen its balance sheet and provide financial flexibility to invest in growth including conducting a stock buyback.
- TOWR says it expects revenue for North America - which accounted for 52% of total revenues last year - to grow by 9%/year over the next two years to $1.35B in 2017 from $1.14B in 2015, while revenue from Europe is seen reaching $650M in 2015.
Oct. 31, 2015, 12:51 PM
- The European Automobile Manufacturers Association issued a statement this week in which it forecasts that a "substantial number" of diesel models will have to be phased out earlier than anticipated.
- The harsh assessment was mirrored by several heavyweight CEOs at the Tokyo Motor Show. The major focus of the event has been next-gen concepts like hydrogen-powered cars and self-driving features, while execs such as Nissan's Carlos Ghosn have marginalized the future of diesel.
- Many automobile industry insiders have noted that diesel was in decline due to the focus on emissions even before Volkswagen (OTCQX:VLKAY) rocked the industry with a cheating scandal.
- The mix of technology, EV, hydrogen, and powertrain changes have kept analysts buzzing over the proper valuations to assign to major players. A reset of demand expectations in China also factors in significantly.
- Automobile industry stocks: DAN, BWA, MTOR, TRW, FDML, DLPH,GNTX, SMP, AXL, MPAA, ALV, MOD, DLPH, VC, THRM, WPRT, GM, F, TM, FCAU, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, TTM, TSLA, THRM, BWA, JCI, TEN, CPS, LDL, TOWR, OTCPK:PEUGF, OTC:RNSDF, OTCPK:RNLSY.
- Previously: Hydrogen and self-driving cars the talk at the Toyota Motor Show (Oct. 29)