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Delphi Automotive (DLPH) Beats on Q4 Earnings, Revenues
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Delphi Automotive PLC posted a 32% increase in adjusted earnings to $1.83 per share in the fourth quarter of 2016 from $1.39 earned in the prior-year quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $1.60.
Adjusted net income increased to $498 million from $391 million a year ago. Including special items, Delphi Automotive reported net income of $281 million or $1.03 per share in the fourth quarter of 2016, up from $199 million or 70 cents per share a year ago.
Revenues rose 11% year over year to $4.3 billion and surpassed the Zacks Consensus Estimate of $4.15 billion. The year-over-year increase was supported by the acquisition of HellermannTyton Group PLC and volume growth in North America, Europe and the Asia Pacific.
Excluding the impact of currency exchange, commodity movements, acquisitions and divestitures, revenues increased 10% year over year. The upside was led by performance improvement of 16% in Asia, 9% in North America, 7% in South America and 5% in Europe.
Adjusted operating income rose to $606 million from $503 million in the fourth quarter of 2015. Adjusted operating margin increased to 14.1% from 13% in the year-ago quarter. The rise in margins can be attributed to strong performance in the Asia Pacific, Europe and North America, an increase in earnings from the acquisition of HellermannTyton, and successful cost-reduction initiatives, partially offset by continued investments for growth.
Delphi Automotive PLC Price, Consensus and EPS Surprise
Delphi Automotive reported adjusted earnings of $6.28 per share in 2016, up 20% from $5.22 per share in 2015. Earnings per share for 2016 also exceeded the Zacks Consensus Estimate of $6.05.
Adjusted net income increased to $1.72 billion from $1.50 billion a year ago. Including special items, Delphi Automotive reported profits of $1.15 billion or $4.21 per share in 2016, compared with $1.19 billion or $4.14 per share in 2015.
Revenues increased 10% to $16.7 billion. Also, the figure beat the Zacks Consensus Estimate of $16.5 billion. The increase was driven by the acquisition of HellermannTyton and volume growth in North America, Europe and the Asia Pacific.
Segment Details
In the Electrical/Electronic Architecture segment, revenues improved 13% to $2.4 billion in the reported quarter. Adjusted operating income grew 38% to $380 million.
In the Powertrain Systems segment, revenues rose 3% to $1.15 billion. Adjusted operating income fell 10% to $133 million.
The Electronics and Safety segment’s revenues increased 17% to $806 million. Adjusted operating income improved 16% to $93 million.
Share Repurchases
In 2016, Delphi Automotive repurchased 9.48 million shares for approximately $635 million. Following this, the company had $1.37 billion available for repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $838 million as of Dec 31, 2016, compared with $535 million as of Dec 31, 2015. Total debt amounted to $3.97 billion as of Dec 31, 2016, compared with $4.01 billion as of Dec 31, 2015.
In 2016, operating cash flow increased to $1.94 billion from $1.67 billion in 2015. Capital expenditure totaled $828 million compared with $704 million a year ago.
Outlook
For 2017, Delphi Automotive revealed its revenue guidance of $16.5–$16.9 billion. Adjusted earnings per share are expected in the range of $6.40–$6.70.
Adjusted operating income is anticipated in the range of $2.19–$2.29 billion (13.3–13.5% of sales) in 2017. Meanwhile, capital expenditure is projected to be around $850 million and operating cash flow is expected to be about $2.1 billion.
Price Performance
Delphi Automotive has significantly underperformed the Zacks categorized Automotive - Original Equipment industry over the last three months, due to a fall in vehicle production in South America and loss of revenues from divested businesses. Production cuts in South America by some automakers are adversely affecting Delphi Automotive’s sales in the region. The company’s shares gained 6.3% over this period, compared with an 18.4% rise recorded by the industry.
Zacks Rank
Delphi Automotive currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Penske Automotive Group, Inc. (PAG - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and GKN plc .
Penske Automotive has an expected long-term earnings per share growth rate of 8.2%. It carries a Zacks Rank #2 (Buy).
GKN holds a Zacks Rank #2 and has long-term growth rate of 6.4%.
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Delphi Automotive (DLPH) Beats on Q4 Earnings, Revenues
Delphi Automotive PLC posted a 32% increase in adjusted earnings to $1.83 per share in the fourth quarter of 2016 from $1.39 earned in the prior-year quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $1.60.
Adjusted net income increased to $498 million from $391 million a year ago. Including special items, Delphi Automotive reported net income of $281 million or $1.03 per share in the fourth quarter of 2016, up from $199 million or 70 cents per share a year ago.
Revenues rose 11% year over year to $4.3 billion and surpassed the Zacks Consensus Estimate of $4.15 billion. The year-over-year increase was supported by the acquisition of HellermannTyton Group PLC and volume growth in North America, Europe and the Asia Pacific.
Excluding the impact of currency exchange, commodity movements, acquisitions and divestitures, revenues increased 10% year over year. The upside was led by performance improvement of 16% in Asia, 9% in North America, 7% in South America and 5% in Europe.
Adjusted operating income rose to $606 million from $503 million in the fourth quarter of 2015. Adjusted operating margin increased to 14.1% from 13% in the year-ago quarter. The rise in margins can be attributed to strong performance in the Asia Pacific, Europe and North America, an increase in earnings from the acquisition of HellermannTyton, and successful cost-reduction initiatives, partially offset by continued investments for growth.
Delphi Automotive PLC Price, Consensus and EPS Surprise
Delphi Automotive PLC Price, Consensus and EPS Surprise | Delphi Automotive PLC Quote
2016 Results
Delphi Automotive reported adjusted earnings of $6.28 per share in 2016, up 20% from $5.22 per share in 2015. Earnings per share for 2016 also exceeded the Zacks Consensus Estimate of $6.05.
Adjusted net income increased to $1.72 billion from $1.50 billion a year ago. Including special items, Delphi Automotive reported profits of $1.15 billion or $4.21 per share in 2016, compared with $1.19 billion or $4.14 per share in 2015.
Revenues increased 10% to $16.7 billion. Also, the figure beat the Zacks Consensus Estimate of $16.5 billion. The increase was driven by the acquisition of HellermannTyton and volume growth in North America, Europe and the Asia Pacific.
Segment Details
In the Electrical/Electronic Architecture segment, revenues improved 13% to $2.4 billion in the reported quarter. Adjusted operating income grew 38% to $380 million.
In the Powertrain Systems segment, revenues rose 3% to $1.15 billion. Adjusted operating income fell 10% to $133 million.
The Electronics and Safety segment’s revenues increased 17% to $806 million. Adjusted operating income improved 16% to $93 million.
Share Repurchases
In 2016, Delphi Automotive repurchased 9.48 million shares for approximately $635 million. Following this, the company had $1.37 billion available for repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $838 million as of Dec 31, 2016, compared with $535 million as of Dec 31, 2015. Total debt amounted to $3.97 billion as of Dec 31, 2016, compared with $4.01 billion as of Dec 31, 2015.
In 2016, operating cash flow increased to $1.94 billion from $1.67 billion in 2015. Capital expenditure totaled $828 million compared with $704 million a year ago.
Outlook
For 2017, Delphi Automotive revealed its revenue guidance of $16.5–$16.9 billion. Adjusted earnings per share are expected in the range of $6.40–$6.70.
Adjusted operating income is anticipated in the range of $2.19–$2.29 billion (13.3–13.5% of sales) in 2017. Meanwhile, capital expenditure is projected to be around $850 million and operating cash flow is expected to be about $2.1 billion.
Price Performance
Delphi Automotive has significantly underperformed the Zacks categorized Automotive - Original Equipment industry over the last three months, due to a fall in vehicle production in South America and loss of revenues from divested businesses. Production cuts in South America by some automakers are adversely affecting Delphi Automotive’s sales in the region. The company’s shares gained 6.3% over this period, compared with an 18.4% rise recorded by the industry.
Zacks Rank
Delphi Automotive currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Penske Automotive Group, Inc. (PAG - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and GKN plc .
Penske Automotive has an expected long-term earnings per share growth rate of 8.2%. It carries a Zacks Rank #2 (Buy).
Fox Factory sports a Zacks Rank #1 (Strong Buy). The company has an expected earnings growth rate of 16.6% over the long term. You can see the complete list of today’s Zacks #1 Rank stocks here.
GKN holds a Zacks Rank #2 and has long-term growth rate of 6.4%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access.Click here for Zacks' private trades >>