CVGI Earnings Prediction
The chart below shows how CVGI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CVGI sees a -1.47% change in stock price 10 days leading up to the earnings, and a -1.70% change 10 days following the report. On the earnings day itself, the stock moves by -0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
CVGI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
171.77M
-30.37%
-25.29%
Gross Margin
11.60%
-15.88%
3.85%
Operating Margin
1.83%
-64.05%
-25.61%
Net Margin
-0.51%
-117.23%
-27.14%
EPS
0.28
27.27%
-660.00%
No Data Available
CVGI Earnings Analysis
Commercial Vehicle Group, Inc. Corporation (CVGI.O) Earnings Conference Call
Positive
New Business Wins: 1. New Business Wins: CVG secured $18 million in new business wins during Q3 2024, bringing the year-to-date total to approximately $95 million across all segments.
Debt Paydown Success: 2. Debt Reduction: The company has successfully paid down $13 million in debt to date, with an additional $20 million received from the sale of its Cab Structures business, contributing to a stronger balance sheet.
Free Cash Flow Increase: 3. Free Cash Flow Improvement: Free cash flow from continuing operations for Q3 2024 was $17 million, an increase from $11 million in the prior year, indicating improved cash generation capabilities.
Leadership Enhancements for Growth: 4. Leadership Additions: The hiring of Peter Lugo as leader of the Electrical Systems segment and Carlos Jimenez as Executive Vice President of Global Operations is expected to enhance operational efficiency and drive growth initiatives.
Operational Efficiency Improvement: 5. Streamlined Operations: The consolidation of production facilities and the sale of non-core businesses are anticipated to improve capacity utilization and reduce operational costs, positioning CVG for future margin expansion.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Consolidated third quarter 2024 revenue was $171.8 million, down from $202.9 million in the prior year, primarily due to lower sales from softening customer demand in key segments.
Decline in Adjusted EBITDA: 2. Decreased Adjusted EBITDA: Adjusted EBITDA for the third quarter was $4.3 million, a significant drop from $12.2 million in the same quarter last year, reflecting lower volumes and operational inefficiencies.
Quarterly Net Loss: 3. Net Loss: The company reported a net loss of $0.9 million or $0.03 per diluted share for the quarter, compared to a net income of $4.7 million or $0.14 per diluted share in the prior year.
Segment Revenue Declines: 4. Segment Revenue Declines: The Electrical Systems segment saw a 19% revenue decrease to $43.4 million, while the Vehicle Solutions segment's revenue fell 16% to $97.3 million, both attributed to reduced customer demand and operational inefficiencies.
Revised Revenue Guidance: 5. Lowered Guidance: The company revised its full-year 2024 revenue guidance to a range of $710 million to $740 million, down from $730 million to $780 million, and adjusted EBITDA expectations to $20 million to $25 million, down from $28 million to $36 million.
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CVGI Earning Call Sentiment
Commercial Vehicle Group, Inc. (CVGI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CVGI.O
-3.38%Positive
The earnings call indicates significant challenges: declining revenue, reduced EBITDA, and supply chain issues. Despite some debt paydown and proceeds from asset sales, the financial health remains concerning with a net loss and high leverage. The Q&A reveals uncertainties in operational improvements and unclear timelines for profitability. The weak financial performance and lack of immediate positive catalysts suggest a negative stock price movement.