J.P. Morgan Maintains Neutral Rating, $19 PT On CVGI

Commercial Vehicle Group, Inc. CVGI posted a “Q4 miss vs. our estimates, but management remains upbeat,” J.P. Morgan reports. “CVGI posted Q4 revenue of $158.0MM lower than JPMe of $177.8MM (lower military revenue was a $4MM hit),” J.P. Morgan writes. “CVGI missed at the operating income line, reporting operating profit of $5.5MM vs. JPMe operating income of $8.4MM. Continuing EPS was +$0.11 (excluding restructuring costs and FX contract gains) vs. JPMe of +$0.14. “The miss came from lower than forecast revenue and the impact through the P&L as operating profit was 3.5% vs. JPMe 4.8%. Incremental margins were strong at 36% vs. our forecast of 26%--on lower volume, so good execution. Tax benefits added ~$0.08 to reported earnings and one-time items (net) added~ $0.02.” J.P. Morgan is maintaining its Neutral rating and year-end 2011 PT of $19. Commercial Vehicle Group closed Friday at $18.36.