Latest news with #StrattecSecurity
Globe and Mail
2 days ago
- Automotive
- Globe and Mail
Strattec Security Posts 6 Percent Gain
Key Points Revenue (GAAP) reached $152.0 million, up 6.3% compared to the prior-year period, and beat expectations by $8.5 million. Non-GAAP diluted EPS was $2.06, exceeded analyst estimates by 92.5% (non-GAAP). Gross margin (GAAP) expanded to 16.7%, a 3.7 percentage point increase in gross margin year over year. These 10 stocks could mint the next wave of millionaires › Strattec Security (NASDAQ:STRT), a leading designer and manufacturer of mechanical and electronic locks and access control products for the automotive industry, released its fourth quarter fiscal 2025 earnings on August 14, 2025. The release showed results well ahead of analyst expectations, with non-GAAP EPS of $2.06 versus an estimate of $1.07 and GAAP revenue of $152.0 million versus an estimate of $143.51 million.—revenue (GAAP) climbed to $152.0 million, outpacing the consensus estimate by $8.5 million (GAAP), and non-GAAP diluted earnings per share reached $2.06 versus an expected $1.07. Compared to the same period a year ago, gross margin (GAAP) improved sharply and cash flow from operations increased significantly in both the quarter and FY2025. Overall, the quarter showed margin expansion and positive cash generation, with continued progress on the company's operational transformation. Metric Q4 FY2025(ended June 29, 2025) Q4 Estimate Q4 FY2024(ended June 30, 2024) Y/Y Change EPS (Diluted, Non-GAAP) $2.06 $1.07 $2.42 (14.9%) Revenue (GAAP) $152.0 million $143.51 million $143.1 million 6.2 % Gross Margin 16.7 % 13.0 % 3.7 pp Adjusted EBITDA (Non-GAAP) $13.0 million $13.8 million (-5.8 %) Source: Analyst estimates for the quarter provided by FactSet. Company Overview and Key Areas of Focus Strattec Security delivers mechanical and electronic vehicle access solutions—including locksets, ignition locks, latches, electronic keys, and power access systems—to major automotive manufacturers and the aftermarket. The company's core business centers on products like power liftgate motion control, power tailgate systems, and electronic locking devices for vehicles. Its products are integrated into new vehicles and used for replacement in North America and key international markets. Recently, Strattec has focused on cost controls, restructuring its joint ventures, and deepening partnerships—especially a key cooperation with WITTE Automotive, following divestment of its stake in VAST LLC. Success for Strattec depends on strong relationships with its top customers, keeping pace with automotive technology, and delivering value through pricing and operational efficiency. Roughly two-thirds of its sales rely on the three major U.S. automakers—General Motors, Ford, and Stellantis—which accounted for approximately 66% of net sales in FY2024 and FY2023, making customer concentration a critical factor. Quarterly Performance and Business Developments Revenue (GAAP) was up 6.3% year over year, beating GAAP revenue estimates by $8.492 million. Growth was driven by new pricing actions, higher demand from automotive manufacturers, and a lift from new product programs. In detail, $3.7 million in additional pricing, $4.1 million of increased demand, and $1.2 million in new launches contributed to this gain, alongside an improved sales mix. The gross margin (GAAP) rose to 16.7%, up from 13.0% in Q4 FY2024. Improvements here came from favorable foreign exchange (delivering a $3.0 million benefit), successful restructuring (saving $1.3 million), and stronger pricing. These factors outweighed a $1.6 million increase in tariff costs and $1.1 million of higher labor costs in its Mexican operations. Despite these benefits, higher selling, administrative, and engineering expenses increased to $16.9 million, mostly reflecting lapping of a $4.7 million one-time engineering recovery in the prior period, as well as increased performance-based compensation and transformation spending. The company generated $30.2 million in cash from operations, compared with $19.5 million in cash from operations in Q4 FY2024. Cash and cash equivalents at quarter end were $84.6 million, a sharp increase from $25.4 million at the end of FY2024. This cash build occurred despite continued investments in property and equipment, which totaled $7.2 million for the year. Debt related to joint ventures declined to $8 million from $13 million at FY2024 year-end. Profitability metrics were mixed. While non-GAAP diluted earnings per share was well above analyst estimates, it fell from a strong prior-year print that included a one-time engineering recovery benefit. Adjusted earnings before interest, taxes, depreciation, and amortization (commonly called EBITDA, which measures core profitability before the effect of financing and non-cash costs) declined 1.1 percentage points year-over-year as a share of revenue, from 9.6% in Q4 FY2024 to 8.5%, down to 8.5% (adjusted EBITDA margin, non-GAAP). This reflected increases in performance compensation and investments in business transformation. Strattec's power access product family—such as its motion control systems for power liftgates and sliding power doors—remained a core focus. These electro-mechanical systems integrate automatic opening and closing functionality for vehicle doors and tailgates, meeting new demands from automakers and end-users. The company continued to invest in talent and engineering to keep up with evolving automotive technology, with business transformation costs and investments in talent contributing to higher administrative costs. Management confirmed ongoing work on product innovation and deeper customer engagement in areas like automated and secure access systems for next-generation vehicles. No new material one-time events were noted in the quarter, although the prior-year comparison period included a significant one-time engineering design and development recovery. There were no dividend declarations or increases reported for the quarter. STRT does not currently pay a dividend. Looking Ahead: Outlook and Risks to Watch Management did not provide formal financial guidance for future quarters or the coming year. In its commentary, leadership noted both excitement for long-term prospects and caution for the near term, referencing downward revisions in North American automotive production forecasts and a pause in new vehicle program launches by key customers. Investors should pay attention to Strattec's ability to manage continued risks, navigating cost pressures from tariffs and labor, and securing new program launches in a slower production environment. The company expects tariff costs to increase by $5–$7 million annually before further mitigation and will need to continue passing through these costs or finding operational efficiencies to protect margins. No clear earnings or revenue targets were offered by management in the earnings release or call. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,062%* — a market-crushing outperformance compared to 185% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. 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Yahoo
2 days ago
- Business
- Yahoo
Strattec Security (STRT) Beats Q4 Earnings and Revenue Estimates
Strattec Security (STRT) came out with quarterly earnings of $2.06 per share, beating the Zacks Consensus Estimate of $1.07 per share. This compares to earnings of $2.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +92.52%. A quarter ago, it was expected that this maker of automotive locks and keys would post earnings of $0.95 per share when it actually produced earnings of $1.5, delivering a surprise of +57.89%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Strattec Security, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $152.01 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.93%. This compares to year-ago revenues of $143.05 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Strattec Security shares have added about 98.5% since the beginning of the year versus the S&P 500's gain of 10%. What's Next for Strattec Security? While Strattec Security has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Strattec Security was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.08 on $138.69 million in revenues for the coming quarter and $4.75 on $564.23 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ChargePoint Holdings, Inc. (CHPT), is yet to report results for the quarter ended July 2025. This company is expected to post quarterly loss of $1.20 per share in its upcoming report, which represents a year-over-year change of +40%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. ChargePoint Holdings, Inc.'s revenues are expected to be $94.8 million, down 12.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report ChargePoint Holdings, Inc. (CHPT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Automotive
- Yahoo
Has GARRETT MOTION (GTX) Outpaced Other Auto-Tires-Trucks Stocks This Year?
Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has Garrett Motion (GTX) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Garrett Motion is a member of the Auto-Tires-Trucks sector. This group includes 96 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Garrett Motion is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for GTX's full-year earnings has moved 4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Our latest available data shows that GTX has returned about 21.7% since the start of the calendar year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -14% on a year-to-date basis. As we can see, Garrett Motion is performing better than its sector in the calendar year. Strattec Security (STRT) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 63.2%. Over the past three months, Strattec Security's consensus EPS estimate for the current year has increased 23.7%. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, Garrett Motion is a member of the Automotive - Original Equipment industry, which includes 50 individual companies and currently sits at #90 in the Zacks Industry Rank. Stocks in this group have gained about 8.4% so far this year, so GTX is performing better this group in terms of year-to-date returns. Strattec Security is also part of the same industry. Investors with an interest in Auto-Tires-Trucks stocks should continue to track Garrett Motion and Strattec Security. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garrett Motion Inc. (GTX) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
01-07-2025
- Business
- Yahoo
Strattec Security Corporation (STRT) Hit a 52 Week High, Can the Run Continue?
Shares of Strattec Security (STRT) have been strong performers lately, with the stock up 14.7% over the past month. The stock hit a new 52-week high of $66.1 in the previous session. Strattec Security has gained 51% since the start of the year compared to the -14.7% move for the Zacks Auto-Tires-Trucks sector and the 5.3% return for the Zacks Automotive - Original Equipment industry. The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 8, 2025, Strattec Security reported EPS of $1.5 versus consensus estimate of $0.95. For the current fiscal year, Strattec Security is expected to post earnings of $4.4 per share on $556.56 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $4.75 per share on $564.23 in revenues. This represents a year-over-year change of 7.95% and 1.38%, respectively. Though Strattec Security has recently hit a 52-week high, what is next for Strattec Security? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style. Strattec Security has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A. In terms of its value breakdown, the stock currently trades at 14.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.7X. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 6.5X. Additionally, the stock has a PEG ratio of 1.41. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Strattec Security an interesting choice for value investors. We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Strattec Security currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Strattec Security meets the list of requirements. Thus, it seems as though Strattec Security shares could still be poised for more gains ahead. Shares of STRT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is XPEL, Inc. (XPEL). XPEL has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B. Earnings were strong last quarter. XPEL, Inc. beat our consensus estimate by 24.00%, and for the current fiscal year, XPEL is expected to post earnings of $1.81 per share on revenue of $460.31 million. Shares of XPEL, Inc. have gained 0.5% over the past month, and currently trade at a forward P/E of 19.83X and a P/CF of 17.11X. The Automotive - Original Equipment industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for STRT and XPEL, even beyond their own solid fundamental situation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report XPEL, Inc. (XPEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Why Fast-paced Mover Strattec Security (STRT) Is a Great Choice for Value Investors
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times. A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. There are several stocks that currently pass through the screen and Strattec Security (STRT) is one of them. Here are the key reasons why this stock is a great candidate. Investors' growing interest in a stock is reflected in its recent price increase. A price change of 8.8% over the past four weeks positions the stock of this maker of automotive locks and keys well in this regard. While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. STRT meets this criterion too, as the stock gained 46.9% over the past 12 weeks. Moreover, the momentum for STRT is fast paced, as the stock currently has a beta of 1.39. This indicates that the stock moves 39% higher than the market in either direction. Given this price performance, it is no surprise that STRT has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped STRT earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, STRT is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. STRT is currently trading at 0.43 times its sales. In other words, investors need to pay only 43 cents for each dollar of sales. So, STRT appears to have plenty of room to run, and that too at a fast pace. In addition to STRT, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
