Overview

* Automotiveaccess control products maker Strattec Security Corp ( STRT ) fiscal Q4 net sales rise 6.3%

* Adjusted EPS for fiscal Q4 beats estimates, reflecting operational improvements

* Gross margin expands to 16.7% from 13.0% yr/yr, aided by cost management

Outlook

* Company faces near-term market uncertainty due to revised auto production estimates

* Strattec plans to stabilize operations and deepen customer relationships

* Company aims to enhance product roadmaps and improve competitive position

Result Drivers

* GROSS MARGIN EXPANSION - Gross margin improved to 16.7% from 13.0% in the prior year period, driven by favorable foreign currency exchange, restructuring savings, improved pricing, and higher volume, per CEO Jennifer Slater

* SALES GROWTH - Net sales increased by 6.3% to $152 mln, driven by $3.7 mln in additional pricing, $4.1 mln from higher demand, $1.2 mln from new program launches, and favorable sales mix

* TARIFF IMPACT - Company faced a $1.6 mln net impact from tariffs and $1.1 mln higher labor costs in Mexico, with tariff recovery expected to lag

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $152.01 $143.50

mln mln (1

Analyst)

Q4 Beat $2.06 $1.07 (1

Adjusted Analyst)

EPS

Q4 EPS $2.01

Q4 Net $8.06

Income mln

Q4 Gross $25.40

Profit mln

Analyst Coverage

* Wall Street's median 12-month price target for Strattec Security Corp ( STRT ) is $63.00, about 29.8% below its August 13 closing price of $81.76

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)