Aptiv PLC APTV reported better-than-expected second-quarter 2023 results.
Adjusted earnings of $1.25 per share beat the Zacks Consensus Estimate by 21.4% and increased more than 100% year over year. Revenues of $5.2 billion surpassed the Zacks Consensus Estimate by 10.1% and increased 28.2% year over year.
It also registered 28% growth in Europe, 19% in North America, 33% in Asia, including 41% in China, and 20% in South America.
Aptiv‘s shares have gained 15.5% over the past three months compared with the 25% rally of the industry it belongs to.
Aptiv PLC Price, Consensus and EPS Surprise
Aptiv PLC price-consensus-eps-surprise-chart | Aptiv PLC Quote
Other Quarterly Numbers
Signal and Power Solutions’ revenues of $3.7 billion improved 21% year over year and beat our estimate of $3.4 billion. Advanced Safety and User Experience segment’s revenues increased 49% year over year to $1.5 billion and surpassed our estimate of $1.1 billion.
Adjusted operating income was $530 million, up more than 100% from the figure reported in the year-ago quarter. This compares favorably with our expectation of an adjusted operating income of $472 million.
Adjusted operating income margin was 10.2%, up 490 basis points year over year. This compares with our expectation of an adjusted operating margin of 10.5%, up 520 bps year over year.
Aptiv exited the quarter with a cash and cash equivalent balance of $1.3 billion compared with the prior quarter’s $1.1 billion. Long-term debt was $6.5 billion, in line with the previous quarter.
Total available liquidity at the end of the quarter was $3.8 billion compared with $3.6 billion recorded at the end of the prior quarter. In the quarter, the company generated $535 million in cash from operating activities.
2023 Outlook
Aptiv expects revenues to be $19.95-$20.25 billion, higher than the Zacks Consensus Estimate of $19.31 billion.
Adjusted EPS is expected between $4.6 and $4.9, higher than the Zacks Consensus Estimate of $4.39.
The adjusted operating income margin is anticipated between 10.4% and 10.7%. Capital expenditure is expected to be $950 million.
The adjusted EBITDA margin is expected between 13.8% and 14.1%. Adjusted effective tax rate is expected to be 12.5%.
Currently, Aptiv carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom OMC reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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