Back to top

Analyst Blog

Delphi Automotive PLC (DLPH - Snapshot Report) saw a 15.5% rise in adjusted earnings to 97 cents per share in the third quarter of fiscal 2013 from 84 cents in the prior-year quarter. It also exceeded the Zacks Consensus Estimate of 94 cents a share. Net income increased 11.4% to $302 million from $271 million a year ago.

Including special items consisting of restructuring charges and costs associated with acquisition and integration, Delphi Automotive reported profit of $271 million or 87 cents per share in the third quarter of 2013 compared with $269 million or 84 cents per share a year ago.

Revenues rose 9.7% to $4.02 billion, almost in line with the Zacks Consensus Estimate. After adjusting the currency exchange, commodity movements, acquisitions and divestitures, revenues increased 3% year over year. Better performance in Asia by 10% and by 9% in North America, contributed to the improvement, but was partially offset by decline in Europe and South America by 5% and 2% respectively.

Operating income increased 5.4% to $387 million from $367 million in the third quarter of fiscal 2012. Adjusted operating income was $428 million against $370 million in the prior-year period. Operating margin was 10.7% versus 10.1% a year ago.

Adjusted earnings before depreciation and amortization, interest expense, other income (expense), income tax expense, equity income, restructuring and acquisition integration (adjusted EBITDA) increased 17.2% to $566 million in the quarter from $483 million in the third quarter of 2012. EBITDA margin was 14.1% versus 13.2% a year ago. The year-over-year improvement in EBITDA was due to better performance in Asia and North America together with benefits from increased earnings from the acquisition of the Motorized Vehicles Division (MVL).
 
Segment Details

In the Electrical/Electronic Architecture segment revenues rose 22% to $2 billion. Adjusted EBITDA increased 46% to $309 million in the quarter from $211 million in the third quarter of 2012.

In the Powertrain Systems segment revenues declined 4% to $1.04 billion. Adjusted EBITDA decreased 16% to $142 million from $169 million in third-quarter 2012.

The Electronics and Safety segment’s revenues improved 9% to $705 million. Adjusted EBITDA climbed 27% to $100 million from $79 million in the third quarter of 2012.

In the Thermal Systems segment revenues dropped 3% to $364 million. Adjusted EBITDA fell 38% to $15 million from $24 million in the prior-year period.

Share Repurchase

Delphi Automotive repurchased about 2.12 million shares for $120 million in the third quarter of 2013. It repurchased about 7.42 million shares for $362 million in the first nine months of 2013. As of Sep 30, 2013, the company had roughly $285 million available on its share repurchase program.

Financial Position

Delphi Automotive had cash and cash equivalents of $1.05 million as of Sep 30, 2013, compared with $1.10 million as of Dec 31, 2012. Total debt amounted to $2.4 billion as of Sep 30, 2013, compared with $2.5 billion as of Dec 31, 2012. The long-term debt-to-capitalization ratio stood at 42.9%, versus 46.6% as of Dec 31, 2012.

In the first nine months of 2013, operating cash flow dipped to $1.1 billion from $1.2 billion in the year-ago period. Capital expenditure was $512 million compared with $563 million in the same period a year ago.

Outlook

Delphi Automotive expects adjusted earnings between $4.25 to $4.35 per share for 2013 compared to the previous guidance of $4.22 and $4.45 per share. Revenues are expected in the range of $16,300–$16,400 a slight change from the earlier estimate of $16,300-$16,500. Adjusted EBITDA is expected to be in the band of $2,350–$2,370 with a margin between 14.4%–14.5%.

The company decreased capital expenditure guidance to $700 million from $750 million earlier.

Delphi Automotive, is one of the largest vehicle components manufacturer companies, and provides electrical and electronic services, powertrain systems, and safety and thermal technology solutions to the global automotive and commercial vehicle markets.. Currently, it carries a Zacks Rank #2 (Buy).

Other stocks worth considering in the same industry are Denso Corp. (DNZOY), Federal-Mogul Corp. (FDML - Snapshot Report) and Gentex Corp. (GNTX - Snapshot Report). All carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%