Quick Win By The Algorithm: Spartan Motors Inc. Shares Its Long-Term Growth Plan

Quick Win By The Algorithm

On October 10th, 2017, I Know First issued a bullish 7-days forecast for Spartan Motors Inc. (NASDAQ: SPAR). The forecast showed a signal of 21.43 and a predictability of 0.27. In accordance with the forecast, SPAR’s stock returned 32.23% over this period, solidifying another quick win by the I Know First algorithm.

Spartan Motors, Inc., through its subsidiaries, engineers, manufactures, and sells heavy-duty and custom vehicles in the United States, Canada, South America, and Asia. It operates through three segments: Emergency Response Vehicles, Fleet Vehicles and Services, and Specialty Chassis and Vehicles. The company sells its products through a network of independent truck dealers to commercial vehicle dealers and leasing companies, as well as directly to end-users. Spartan Motors, Inc. was founded in 1975 and is headquartered in Charlotte, Michigan.

On October 12th, 2017, Spartan Motors unveiled its long-term growth plan at the Analyst/ Investor Day. The presentations were featured by Daryl Adams, President and Chief Executive Officer, Rick Sohm, Chief Financial Officer and divisional presidents.

Adams stated that the accelerated growth is due to the improved operational discipline and performance, increased accountability and an acute focus on strengthening their team. Therefore, these changing dynamics resulted in an increased financial momentum and growth.

This year marked an inflection point for SPAR. The Company returned to its core competencies to drive profitability and has focused on profitable orders in its strategic shift toward a more valuable product mix. The Company has achieved profitability on an adjusted basis for six straight quarters and has built a solid foundation for the business, creating the necessary momentum to command their road ahead.

Thus, Spartan is now focusing on becoming a purpose driven organization, with a customer-centric focus. The Company’s strategy to accelerate growth is to adopt disruptive innovation, solutions-based products, streamlined operations and a disciplined approach.

Moreover, Spartan shared its long-term growth objectives. The Company is aiming to be the first or second player in each market it serves. It is expecting $1 billion in sales by 2020 and a 10% adjusted EBITDA margin. Furthermore, Spartan sees a potential to nearly double its revenues, which they stated as an aspirational, but achievable goal.

According to Mr. Adams, this was the first time that the Company shared this level of detail, which reaffirms the Company’s stabilized position and its main goal to continue in this path of accelerated growth.

Current I Know First subscribers received this bullish SPAR forecast on October 10th, 2017


Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.