Aptiv (APTV) Rises 9% Since Q1 Earnings Beat, Revenues Up Y/Y

Aptiv PLC APTV reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

The earnings beat impressed investors as the stock gained 8.5% since the earnings release on May 2.

Quarterly adjusted earnings of $1.16 per share beat the Zacks Consensus Estimate by 10.5% and increased 27.5% year over year. Revenues of $4.9 billion missed the Zacks Consensus Estimate by 1.7% but increased 1.7% year over year.

The company’s adjusted revenues registered 2% growth. Adjusted revenues grew 2% in North America and 7% in Asia, including 9% in China. Revenues declined 1% in Europe and 9% in South America.

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 $3.5 billion improved 1% year over year. The Advanced Safety and User Experience segment’s revenues increased 5% year over year to $1.4 billion.

Adjusted operating income was $544 million, up 24.5% from the figure reported in the year-ago quarter. Adjusted operating income margin was 11.1%, up 200 basis points year over year. This is in line with our expectation.

Aptiv exited the quarter with a cash and cash equivalent balance of $941 million compared with the prior quarter’s $1.6 billion. Long-term debt was $4.7 billion, compared with $6.2 billion in the previous quarter.

Total available liquidity at the end of the quarter was $3.4 billion compared with $4.1 billion recorded at the end of the prior quarter. In the quarter, the company generated $244 million in cash from operating activities.

2024 Outlook

Aptiv expects revenues to be $20.85-$21.45 billion, lower than the current Zacks Consensus Estimate of $21.53 billion.

Adjusted EPS is expected between $5.8 and $6.3, higher than the Zacks Consensus Estimate of $5.75. Adjusted operating income margin is anticipated between 11.6% and 12%. Capital expenditure is expected to be $1 billion.

Adjusted EBITDA margin is expected between 15% and 15.3%. Adjusted effective tax rate is expected to be 17.5%.

Currently, Aptiv carries a Zacks Rank #3 (Hold).

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 impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.

Equifax EFX reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.

EFX’s adjusted earnings were $1.5 per share, ahead of the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

ManpowerGroup MAN reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.

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