Aptiv’s (APTV) Q2 Earnings Beat Estimates, Increase Y/Y

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

Adjusted earnings of $1.58 per share beat the Zacks Consensus Estimate by 15.3% and increased 26.4% year over year. Revenues of $5.1 billion missed the Zacks Consensus Estimate by 5.1% and decreased 2.9% year over year.

The company’s adjusted revenues declined 2% year over year. Adjusted revenues declined 3% in North America and stayed flat in Asia, including a 1% increase in China. Revenues declined 2% in Europe and 13% in South America.

APTV’s stock has lost 35% of its value in the past year against the 35% rally of the industry it belongs to.

Aptiv PLC Price, Consensus and EPS Surprise

Aptiv PLC Price, Consensus and EPS Surprise

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 declined 5% year over year. The Advanced Safety and User Experience segment’s revenues increased 1% year over year to $1.6 billion.

Adjusted operating income was $606 million, up 14.3% from the figure reported in the year-ago quarter. Adjusted operating income margin was 11.1%, up 180 basis points year over year.

Aptiv exited the quarter with a cash and cash equivalent balance of $1.4 billion compared with the prior quarter’s $941 million. Long-term debt was $5.5 billion compared with $4.7 billion in the previous quarter.

Total available liquidity at the end of the quarter was $4.6 billion compared with $3.4 billion recorded at the end of the prior quarter. In the quarter, the company generated $643 million in cash from operating activities.

Updated 2024 Outlook

Aptiv expects revenues to be between $20.1 billion and $20.4 billion compared with the prior expectation of $20.85-$21.45 billion, and lower than the current Zacks Consensus Estimate of $21.07 billion.

Adjusted EPS is expected between $6.15 and $6.45 compared with the previous anticipation of $5.8 and $6.3, and higher than the Zacks Consensus Estimate of $5.94. Adjusted operating income margin is anticipated between 11.8% and 12.1% compared with the previous guidance of 11.6% and 12%. Capital expenditure is expected to be $900 million against the previous expectation of $1 billion.

Adjusted EBITDA margin is now expected between 15.4% and 15.7%, while the previous expectation was 15% to 15.3%. The adjusted effective tax rate is expected to be around 16.5% compared with the previous expectation of 17.5%.

Currently, Aptiv carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom OMC reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.

Equifax EFX reported better-than-expected second-quarter 2024 results.

EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.

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

Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.

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