Autoliv Inc. ALV reported fourth-quarter 2022 adjusted earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.54. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. Smart pricing strategies to offset commodity cost woes aided profits. The bottom line also shot up 40% on a year-over-year basis. The company reported net sales of $2,335 million in the quarter, which missed the Zacks Consensus Estimate of $2,403 million. The top line, however, soared 10% year over year.
Autoliv reported an adjusted operating income of $233 million, surging 31% year over year. Adjusted operating margin from continuing operations was 10%, higher than 8.3% in the year-ago period. It was achieved through extensive customer discussions that were initiated in early 2022 and resulted in price increases to offset high raw material cost inflation.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,581 million, beating the Zacks Consensus Estimate of $1,516 million. Revenues rose 12% on a year-over-year basis. All major categories within the segment witnessed organic sales growth. The primary reason for the upside was a rise in sales of inflatable curtains and steering wheels, followed by side airbags and passenger airbags.
Sales in the Seatbelts and Associated Products segment totaled $754 million, up 6.1% from the prior-year quarter. Organic growth in Europe and the Americas, followed by Asia excluding China, was the contributing factor. The figure, however, missed the consensus mark of $893 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $742 million, which surpassed the consensus mark of $723 million. Sales in Europe totaled $616 million, lagging the Zacks Consensus Estimate of $637 million. Sales in China came in at $536 million, marginally missing the consensus mark of $540 million. Sales in Japan were $191 million, missing the consensus mark of $222 million. Sales in Rest of Asia totaled $250 million, which surpassed the consensus mark of $245 million.
Financial Position
Autoliv had cash and cash equivalents of $594 million as of Dec 31, 2022, down 39% year over year. Long-term debt totaled $1,054 million, decreasing from $1,662 million as of Dec 31, 2021. Net capital expenditure increased 8% to $165 million. At quarter-end, free cash flow was $297 million, up from $164 million in the year-ago period. During the quarter under review, Autoliv hiked its dividend by 2.7% to 66 cents per share. During the quarter, the company repurchased 0.65 million shares at an average price of $84.67 per share.
2023 Guidance
The company forecasts full-year 2023 organic sales growth of around 15%. Adjusted operating margin is anticipated within the 8.5-9% range. Operating cash flow is expected at $900 million for 2023.
Zacks Rank & Key Picks
Autoliv currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the auto space include Mercedes-Benz MBGAF, Byd Co BYDDY and BMW AG BAMXF. All companies currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercedes-Benz develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand. The Zacks Consensus Estimate for MBGAF’s 2022 earnings implies year-over-year growth of 213%.
Byd is principally engaged in the research, development, manufacture and distribution of automobiles and secondary rechargeable batteries. The Zacks Consensus Estimate for BYDDY’s 2022 sales and earnings implies year-over-year growth of 77.07% and 354.55%, respectively.
BMW is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2022 sales and earnings implies year-over-year growth of 9.04% and 30.30%, respectively.
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Autoliv, Inc. (ALV) : Free Stock Analysis Report
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