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SYPR Nasdaq· Sypris Solutions, Inc
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SYPR Nasdaq· Sypris Solutions, Inc
Earnings report Q4 2023

Sypris Industries Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Sypris Industries reported a significant increase in net revenue for the latest quarter. The company's revenue for the quarter was primarily driven by increased sales volumes in the commercial vehicle market, automotive, sport utility vehicle and off-highway markets, and energy product sales. Sales volumes in the commercial vehicle market contributed $0.7 million, while the automotive, sport utility vehicle, and off-highway markets added $0.5 million. Energy product sales accounted for $1.1 million of the net revenue increase.

Strengths

Sypris Electronics, a subsidiary of Sypris Industries, experienced a notable increase in revenue for the quarter. The increase in revenue was primarily attributed to higher sales to customers serving the communications market and the ramping up of production for two follow-on programs. Additionally, improved material availability compared to the prior year periods contributed to the increase in sales.

Challenges

Sypris Technologies, another segment of Sypris Industries, reported a mixed performance in terms of gross profit. While gross profit increased by $0.4 million for the quarter, it decreased by $0.2 million for the nine months ended October 1, 2023. The decrease in gross profit for the nine-month period was mainly due to negative impacts from foreign exchange rates for the company's Mexican subsidiary, resulting in a decrease of $1.8 million.

Noteworthy

The overall increase in net revenue for Sypris Industries was primarily driven by strong sales volumes in key markets such as the commercial vehicle market, automotive, sport utility vehicle, and off-highway markets, as well as energy product sales. The company's order backlog for Sypris Electronics is expected to support a stable revenue rate for the remainder of 2023.

Summary

Sypris Industries delivered a strong performance in terms of revenue growth in the latest quarter. The company experienced increased sales volumes in key markets, resulting in a significant net revenue increase. Sypris Electronics, in particular, contributed to the revenue growth with higher sales to customers in the communications market and improved material availability. However, Sypris Technologies faced challenges with a decrease in gross profit due to negative impacts from foreign exchange rates. Overall, the company's performance reflects its ability to capitalize on market opportunities and manage certain challenges effectively.

Source documents

Form 10-Q  filed on Nov 15, 2023
87 pages scanned

Reference data

Company financials Q4 revenue 33.6M
Analyst estimates Q4 EPS missed by NaN%
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