Does Autoliv’s Earnings Beat Streak and Positive ESP Change The Bull Case For Autoliv (ALV)?

  • Autoliv, Inc. has recently continued its pattern of exceeding earnings expectations, with the latest reported quarter delivering earnings of $2.32 per share and an average surprise of 8.62% over the last two releases.

  • Analysts’ bullish stance, reflected in a positive Earnings ESP of 3.63% combined with a strong Zacks Rank #2, suggests growing confidence in Autoliv’s ability to outperform near-term earnings projections.

  • With this backdrop of consistent earnings surprises and a positive Earnings ESP, we’ll examine how Autoliv’s earnings momentum shapes its investment narrative.

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To own Autoliv, you need to believe in a resilient auto safety franchise that converts a solid earnings record into disciplined capital returns, even as the car market shifts toward EVs and higher automation. The latest run of estimate‑beating results and a positive Earnings ESP reinforces the short term earnings momentum, which supports catalysts like dividend growth and the sizeable buyback program, but it does not fundamentally change the key debate around cyclical demand, high leverage and execution on new technologies. Recent partnerships with NIO, Adient and Tensor highlight how Autoliv is positioning its restraint systems for new seating layouts and higher levels of autonomy, yet the upcoming earnings release also throws more attention on margins, cash flow and the pending CFO transition, which could become more important if conditions tighten.

However, that balance sheet risk is something investors should watch closely. Autoliv’s shares have been on the rise but are still potentially undervalued by 25%. Find out what it’s worth.

ALV 1-Year Stock Price Chart
ALV 1-Year Stock Price Chart

Three Simply Wall St Community fair value views span roughly US$126.97 to US$169.99, underscoring how differently shareholders are assessing Autoliv’s earnings momentum, capital returns and the near term uncertainties around leverage and leadership change.

Explore 3 other fair value estimates on Autoliv – why the stock might be worth as much as 34% more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ALV.

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