Aptiv (APTV) Earnings And Revenues Surpass Estimates In Q3

Aptiv PLC (NYSE:APTV) reported better-than-expected third-quarter 2018 results.

Adjusted earnings of $1.24 per share surpassed the Zacks Consensus Estimate by 4 cents and met the midpoint of the guided range. Revenues of $3.5 billion exceeded the consensus mark by $63 million and came slightly below the midpoint of the guided range.

In the quarter, Aptiv completed the acquisition of Winchester Interconnect, which is expected to strengthen the company’s Signal and Power Solutions segment.

So far this year, shares of Aptiv have lost 9.5%, against the Zacks S&P 500 Composite’s 0.3% increase.

Quarterly Numbers in Detail

Revenues from the Signal and Power Solutions segment came in at $2.5 billion, up 9% on a year-over-year basis and contributing 73% to total revenues. Advanced Safety and User Experience revenues of $956 million improved 13% year over year and contributed 27% to total revenues.

Adjusted operating income of $420 million increased 7% year over year. Adjusted operating income margin of 12.1% contracted 40 basis points (bps) year over year.

Aptiv ended the third quarter with cash and cash equivalents balance of $771 million compared with $970 million in the previous quarter. Long-term debt was $4.1 billion, roughly flat sequentially.

Total available liquidity at the end of the third quarter was $3.1 billion compared with $3.3 billion at the end of the prior quarter. Net cash provided by operating activities was $119 million and capital expenditures were $212 million in the quarter.

The company repurchased 0.79 million shares for roughly $69 million in the quarter, leaving roughly $767 million shares for future share repurchases under its existing share repurchase program. Aptiv paid cash dividend of $58 million.

2018 Guidance

Aptiv trimmed its 2018 guidance. The company anticipates earnings to be in the range of $5.11 -$5.17 per share compared with the prior guidance of $5.30-$5.40. The revised guided range is below than the Zacks Consensus Estimate of $5.29.

Net sales are expected between $14.275 billion and $14.375 billion compared with $14.350 billion and $14.550 billion anticipated earlier. The revised guided range is lower than the Zacks Consensus Estimate of $14.420 billion.

Adjusted operating income is now expected in the range of $1.73-$1.75 billion compared with the previous guidance of $1.79-$1.82 billion. Aptiv expects adjusted operating income margin to be between 12.1% and 12.2%, lower than the previous guidance of roughly 12.5%.

Zacks Rank & Upcoming Releases

Aptiv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Business Services sector are keenly awaiting third-quarter earnings reports from key players like Genpact (NYSE:G) , Delphi Technologies (NYSE:DLPH) and Green Dot (NYSE:G) . While Genpact will report on Nov 6, Delphi Technologies and Green Dot will release quarterly results on Nov 7.

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