Cooper-Standard Holdings Inc. (CPS) Stock Sliding in Premarket, Here’s the Reason

Cooper-Standard Holdings Inc. (CPS), a leading supplier of systems and components in transportation markets, has declined 3.48% in the premarket trading session. Consequently, the stock was trading at $10.26 when last checked. During Friday’s regular trading session, the stock slid by 3.28% to close the day at $10.63. The stock declined after the closure of the market on Friday when a change in S&P Dow Jones Indices saw Cerence Inc. replacing Cooper-Standard Holdings Inc. in the S&P SmallCap 600, while BellRing Brands Inc. was to replace Clarence in S&P MidCap 400. The changes would become effective when the market would open on the 21st of March 2022.

Accolade for Employee of CPS

On 2nd March, CPS announced that its senior program engineering manager, Angela Greiner, has been recognized as one of the 2022 STEP Ahead Honorees by The Manufacturing Institute. The honor was bestowed for her accomplishment in using the innovative technologies for the production floor as well as building the foundation for high-quality levels. Chris Couch, senior vice president of the company, commented that the proven leadership demonstrated by Angela has highly impacted the performance of the company.

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FY 2021 Results

On 17th February, CPS reported the results for FY 2021. The company generated sales of $2.33 billion during FY 21 compared to the $2.37 billion it generated during FY 20. The net loss for the year was $322 billion versus $267 billion for FY 20. The adjusted EBITDA for FY 21 was $(8) million, while for FY 20, it was $35.7 million. The company suffered a loss of $18.94 per diluted share during fiscal 2021 against the $15.82 it suffered during FY 20.

FY 2022 Guidance

Based on several factors, CPS released the guidance for the full year 2022. According to that, the company expects the sales to lie in a range of $2.6 to $2.8 billion during FY 22. The adjusted EBITDA is expected to lie between $50 and $60 million during fiscal 2022. The capital expenditures estimate for the year lies in a range of $90 to $100 million, while the estimated cash restructuring lies in between a range of $20 to $30 million.

What’s in Store for CPS?

Looking ahead, analysts are of the view that CPS stock holds several negative signals at the moment, and hence, is expected to decline in the next couple of weeks. Investors should take a careful decision regarding investment in CPS stock.

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