Why TRW Automotive (TRW) Hit an All-Time High on Friday

NEW YORK (TheStreet) -- TRW Automotive  (TRW) peaked at an intraday record high of $81.37 during Friday's session, after the auto parts maker reported better-than-expected earnings.

By market close, shares retreated slightly, up 4.6% to $79.81. Trading volume of 1.9 million was higher than its three-month daily average of 1.1 million.

The Michigan-based business reported fourth-quarter net income of $1.84 a share. Analysts surveyed by Thomson Reuters had expected $1.64 a share in net income.

Revenue of $4.5 billion was 12.5% higher than a year earlier and beat estimates by $275 million.

The company has been profiting from a steady recovery in the auto industry, both domestically and abroad. Higher sales were due to increasing demand for TRW auto technologies, such as camera and radar sensors, and higher vehicle production volumes.

"TRW's successes in 2013 highlight the company's strong market position as our achievements were accomplished against a backdrop of challenging economic conditions, especially in our largest market, Europe," said CEO John Plant in a statement.

TheStreet Ratings team rates TRW AUTOMOTIVE HOLDINGS CORP as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate TRW AUTOMOTIVE HOLDINGS CORP (TRW) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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