By Shares of LCI Industries are expected to open weak on Tuesday following the company’s warning of a loss in the latest quarter. The decline in sales was attributed to lower-than-anticipated production levels at the original equipment manufacturers (OEMs) it supplies, particularly within the marine industry, where extended shutdowns at pontoon manufacturers affected business.
In premarket trading, LCI Industries’ shares were down 4.2% from the previous session’s closing price of $117.94, although they are still up 11% over the last three months.
The company, known for providing engineered components to manufacturers in the transport and recreation sectors, estimates sales for the final quarter of 2023 to be in the range of $832 million to $842 million. This reflects a decrease from $894 million reported in the same period a year ago. However, LCI Industries anticipates narrowing its loss to between 4 cents and 14 cents per share, compared to a loss of 68 cents per share in Q4 2022. According to analysts surveyed by FactSet, they had initially projected sales of $846.3 million and earnings of 38 cents per share (or 41 cents on an adjusted basis) for the quarter.
Despite challenges in the marine production sector at the start of 2024, LCI Industries has observed a slow but steady recovery in recreational vehicle production after holiday shutdowns. This rebound currently surpasses January 2023 levels and is expected to show a positive trend with stronger year-over-year performance evident from February orders.
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