• Q4 2023 Sales: $229.5 million with adjusted sales of $229.4 million.

• Q4 2023 Gross Profit: Reported at $45.5 million and adjusted gross profit at $45.7 million (19.9% of adjusted sales).

• Q4 2023 Operating Income: Operating income of $6.0 million and adjusted operating income of $6.2 million (2.7% of adjusted sales).

• Q4 2023 EBITDA: Adjusted EBITDA of $15.6 million (6.8% of adjusted sales).

• Q4 2023 Earnings Per Share: EPS of $0.11 and adjusted EPS of $0.12.

• 2024 Full-Year Guidance: Midpoint sales of $1 billion, midpoint EBITDA of $67 million, and midpoint EBITDA margin of 6.7%.

• 2028 Revenue and EBITDA Margin Target: $1.35 - $1.55 billion in revenue and EBITDA margin target of 12.0% - 14.0%.

• Warning! GuruFocus has detected 5 Warning Signs with SRI.

On February 28, 2024, Stoneridge Inc (NYSE:SRI), a leading manufacturer of electrical and electronic components for the automotive sector, released its 8-K filing, detailing the company's financial performance for the fourth quarter of 2023. The company, which specializes in products such as driver information systems, camera-based vision systems, and electronic control units, primarily serves the North American market.

Despite facing significant macroeconomic headwinds, including the UAW strike and slower-than-expected penetration for electric vehicles, Stoneridge Inc managed to meet its financial commitments for the year. The company's Q4 sales reached $229.5 million, with a gross profit of $45.5 million. The adjusted gross profit margin stood at 19.9% of adjusted sales. Operating income was reported at $6.0 million, with an adjusted figure of $6.2 million, representing 2.7% of adjusted sales. Adjusted EBITDA for the quarter was $15.6 million, or 6.8% of adjusted sales, and the company achieved an earnings per share (EPS) of $0.11, with an adjusted EPS of $0.12.

For the full year, Stoneridge Inc reported sales of $975.8 million and a loss per share of $(0.19). Adjusted sales for the year were $961.2 million, with an adjusted loss per share of $(0.08). The company's performance in the fourth quarter showed a sequential improvement from the third quarter, in line with prior expectations.

Financial Highlights and Challenges

Jim Zizelman, president and CEO of Stoneridge, highlighted the company's resilience in the face of challenges, attributing the year's outcomes to successful new program launches, improvements in manufacturing, and operating expense initiatives. Zizelman emphasized the company's focus on efficient cash generation and inventory reduction to support growth.