Shiloh Industries Inc. (NASDAQ: SHLO) has not confirmed the date it will release its Q3 2020 financial results, but it is estimated to be soon as per historical earnings date and earnings week for the quarter.
What to look for
When the company released its Q2 2020 results, Interim CEO, Cloyd Abruzzo, said that business restrictions, market conditions, and matters related to the pandemic led to most OEMs suspending production in Europe, Asia, and North America, which impacted the financial performance of the company. Following the disruptions, the company implemented various actions to preserve liquidity and reduce costs, including temporary salary cuts between 20% and 25%, board fees reduction, and mandatory vacations.
Ahead of the third-quarter results, the company anticipates a rebound of operations in Europe, North America, and China, positively impacting the results. In addition, despite the company experiencing operational issues associated with restarting plants that were shut for a long time, the company works to meet customer demand and ramp up production.
Earnings: Stockearning Estimated EPS is expected to be to beat estimates and exceed the previous quarter EPS of $1.03. The company's net loss of $58.7 million included a $24.5 million non-cash impairment charge, and adjusted EBITDA loss was $3.2 million.
Revenue: In Q2, revenue was$157.9 million thanks to new customer wins, bringing contract revenue of $136.7 million. The company resumed shipments in Q3 2020 and continues to increase global operations to serve its customers with market demand recovering. As a result, Q3 2020 revenue is likely to surpass the revenue reported in Q2 2020. At the end of the quarter, the company had $91.6 million and is currently complying with amended covenants under the Tent Amendment entered on June 11, 2020, to the Credit Agreement.
Stock movement: Since the last earnings release, the stock has lost 56.6%. Following the earnings release, the stock has been UP on 20 occasions in the past 37 quarters. So, the historical stock price reaction shows a 54% chance of the stock going up once the company releases Q3 2020 results. According to the Stockearnings algorithm, the predicted move on the first day is 8% whole the predicted move on the seventh day is 10%.
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