Analyst Says UEI Exceeded Q2 Expectations Despite 'Accelerated Cord-Cutting'

Universal Electronics handily exceeded expectations in Q2, despite the “background noise of accelerated cord-cutting,” emailed Dougherty & Co. analyst Steven Frankel to investors Wednesday. He cited improved gross margins following UEI’s shift of “substantial manufacturing capacity” from China to Mexico. In June, CEO Paul Arling said (see 1906040032) he was “unpleasantly surprised” to learn of President Donald Trump's threat to impose tariffs on Mexican imports just as the company was shifting production from China to Monterrey, Mexico, to escape tariffs on Chinese goods.