Tower International rose 7.5% in Wednesday’s afternoon trade after it reported financial results for Q3, with better-than-expected earnings and revenue that fell short.
The global manufacturer of engineered automotive structural metal components and assemblies posted Q3 adjusted earnings of $0.90 per share, compared with the prior-year period’s $0.75 per share. Analysts polled by Capital IQ were expecting EPS of $0.80.
Revenue was $457 million, up 3% from $442 million in the same quarter last year. The Street view was for revenue of $466.7 million. The company said it has reached agreements to sell its remaining businesses in China, with cash proceeds after tax of $25 million. It also said that its outlook for adjusted EPS is improved by about $0.10 – $0.15 per year for the next few years because of expected R&D tax credits.