Share price of Superior Industries International, Inc. SUP increased 2.6% to $26.12 on Apr 27 after the company reported impressive results for the first quarter of 2016. Superior Industries reported first-quarter 2016 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents. Moreover, earnings per share surged 250% from 16 cents recorded in the first quarter of 2015.Earnings in the reported quarter benefited from higher shipment volume and better cost performance in the company’s manufacturing facilities, mainly driven by the new facility in Mexico which operated at full capacity in first-quarter 2016.Revenues increased 7.1% year over year to $186.1 million in the reported quarter and outpaced the Zacks Consensus Estimate of $180 million. The improvement was primarily driven by higher unit shipments, partially offset by lower aluminum price. Wheel unit shipments rose 25.3% to 3.2 million from 2.5 million units in the prior-year quarter.Gross profit surged 147% to $27.7 million (27.1% of value added sales) from $11.2 million (13.6% of value added sales) in the prior-year quarter. The increase can be attributed to higher unit shipments and cost efficiency at the company’s manufacturing facilities, mainly driven by the new facility in Mexico which operated at full capacity in the quarter.Selling, general and administrative expenses increased to $9 million (8.8% of value added sales) in first-quarter 2016 from $7.6 million (9.2% of value added sales) in the prior-year quarter. Operating income was $18.7 million (18.3% of value added sales) compared with $3.7 million (4.5% of value added sales) a year ago.Capital DeploymentIn the first quarter of 2016, the company repurchased 672,483 shares for $11.9 million. In the quarter, the company completed the former $30 million share repurchase program. In Jan 2016, the board of directors of Superior Industries authorized the repurchase of another $50 million worth of shares under the repurchase program. From Jan 1 through Apr 26, 2016, the company repurchased 712,039 shares for $12.8 million.In the reported quarter, the company paid a quarterly dividend of 18 cents per share.Financial DetailsFor the first quarter of 2016, Superior Industries’ cash flow from operations was $16 million compared with cash outflow of $1 million in the year-ago period. The increase in cash flow was driven by better earnings and lower working capital, along with lower cost of aluminum.OutlookSuperior Industries provided its 2016 outlook based on current economic and industry trends. Management expects net sales in 2016 to range from $690–$710 million, down from the previous estimate of $720–$740 million. Net sales are likely to be adversely impacted by lower aluminum prices this year. Net sales include the value of aluminum and outsourced process costs, which are passed on to customers.Superior Industries expects value-added sales to be in the range of $380–$395 million, up from the previous forecast of $370–$390 million. Value-added sales will benefit from a 3%–6% rise in unit shipments as well as favorable product mix. Value-added sales exclude the value of aluminum and outsourced process costs, which are passed on to customers.The company expects adjusted earnings before income tax depreciation and amortization (EBITDA) as a percentage of net sales, to increase by 285–335 basis points to 13.3%–13.8%. Superior Industries anticipates adjusted EBITDA margin, as a percentage of value-added sales, to improve by 300–370 basis points to 24.1%–24.8%.The company also projects capital expenditures of around $40 million. The effective tax rate is expected to be in the range of 25%–27%. According to IHS projections, North American Light Vehicle production will increase approximately 4% to 18.2 million units in 2016.Going forward, the company expects to achieve its short-term 2016 objectives, based on execution of its strategic initiatives, better operating efficiency and solid unit volume.Superior Industries currently sports a Zacks Rank #1 (Strong Buy).Stocks that Warrant a LookOther favorably ranked automobile stocks include Lear Corp. LEA, Wabash National Corp. WNC and Oshkosh Corporation OSK. All the three stocks carry the same Zacks Rank as Superior Industries.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SUPERIOR INDS (SUP): Free Stock Analysis Report LEAR CORPORATN (LEA): Free Stock Analysis Report OSHKOSH CORP (OSK): Free Stock Analysis Report WABASH NATIONAL (WNC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research