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Delphi Automotive PLC posted a 17% increase in adjusted earnings to $1.59 per share in the first quarter of 2017 from $1.36 earned in the prior-year quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $1.46.
Adjusted net income increased to $428 million from $377 million a year ago. Including special items, Delphi Automotive reported net income of $335 million or $1.24 per share in the first quarter of 2017, up from $320 million net income or $1.15 per share from continuing operations a year ago.
Revenues rose 6% year over year to $4.29 billion and surpassed the Zacks Consensus Estimate of $4.13 billion. The year-over-year increase was supported by volume growth in all regions.
Revenues increased 9% year over year, excluding the impact of currency exchange, commodity movements, acquisitions and divestitures. The upside was led by performance improvement of 16% in South America, 10% in Europe, 10% in Asia and 7% in North America.
Adjusted operating income rose to $537 million from $512 million in the first quarter of 2016. Adjusted operating margin decreased to 12.5% from 12.6% in the year-ago quarter. The slight decline in margins can be attributed to sales growth and the beneficial impacts of cost-reduction initiatives, being offset by continued investments for growth as well as warranty charges in the quarter.
Delphi Automotive PLC Price, Consensus and EPS Surprise
In the Electrical/Electronic Architecture segment, revenues improved 3% to $2.34 billion in the reported quarter. Adjusted operating income grew 7% to $329 million.
In the Powertrain Systems segment, revenues rose 5% to $1.17 billion. Adjusted operating income surged 28% to $160 million.
The Electronics and Safety segment’s revenues increased 17% to $818 million. Adjusted operating income plunged 40% to $48 million.
Share Repurchases
In first-quarter 2017, Delphi Automotive repurchased 2.56 million shares for approximately $193 million. Following this, the company had almost $1.18 billion available for repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $547 million as of Mar 31, 2017 compared with $838 million as of Dec 31, 2016. Total debt amounted to $3.99 billion as of Mar 31, 2017 compared with $3.96 billion as of Dec 31, 2016.
In first-quarter 2017, operating cash flow increased to $290 million from $268 million in 2016. Capital expenditure totaled $215 million compared with $240 million a year ago.
Business Development
Delphi Automotive announced its decision to spin off its Powertrain Systems segment into a new, independent publicly traded company. The transaction is expected to be completed by Mar 2018, subject to customary market, regulatory and other conditions. Post the transaction, Delphi Automotive shareholders will own shares of both companies.
Outlook
For second-quarter 2017, Delphi Automotive revealed its revenue guidance of $4.15–$4.25 billion. Adjusted earnings per share are expected in the range of $1.62–$1.68.
Adjusted operating income is anticipated in the range of $560–$580 million (13.5–13.7% of sales) in second-quarter 2017.
For 2017, Delphi Automotive reiterated 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 $2.21–$2.31 billion (13.4–13.7% of sales) in 2017, up from the prior expectation of $2.19–$2.29 billion (13.3–13.5%). 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 outperformed the Zacks categorized Automotive - Original Equipment industry over the last three months. The company’s shares gained 6.3% over this period compared with 3.3% growth recorded by the industry.
Zacks Rank
Delphi Automotive currently carries a Zacks Rank #2 (Buy).
Other stocks worth considering in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Volkswagen AG and Tata Motors Ltd .
Volkswagen, also a Zacks Rank #2, has long-term expected growth rate of 16.8%.
Tata Motors has long-term expected growth rate of 27.9% and carries a Zacks Rank #2 as well.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Delphi Automotive (DLPH) Tops Q1 Earnings, Reveals Spinoff
Delphi Automotive PLC posted a 17% increase in adjusted earnings to $1.59 per share in the first quarter of 2017 from $1.36 earned in the prior-year quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $1.46.
Adjusted net income increased to $428 million from $377 million a year ago. Including special items, Delphi Automotive reported net income of $335 million or $1.24 per share in the first quarter of 2017, up from $320 million net income or $1.15 per share from continuing operations a year ago.
Revenues rose 6% year over year to $4.29 billion and surpassed the Zacks Consensus Estimate of $4.13 billion. The year-over-year increase was supported by volume growth in all regions.
Revenues increased 9% year over year, excluding the impact of currency exchange, commodity movements, acquisitions and divestitures. The upside was led by performance improvement of 16% in South America, 10% in Europe, 10% in Asia and 7% in North America.
Adjusted operating income rose to $537 million from $512 million in the first quarter of 2016. Adjusted operating margin decreased to 12.5% from 12.6% in the year-ago quarter. The slight decline in margins can be attributed to sales growth and the beneficial impacts of cost-reduction initiatives, being offset by continued investments for growth as well as warranty charges in the quarter.
Delphi Automotive PLC Price, Consensus and EPS Surprise
Delphi Automotive PLC Price, Consensus and EPS Surprise | Delphi Automotive PLC Quote
Segment Details
In the Electrical/Electronic Architecture segment, revenues improved 3% to $2.34 billion in the reported quarter. Adjusted operating income grew 7% to $329 million.
In the Powertrain Systems segment, revenues rose 5% to $1.17 billion. Adjusted operating income surged 28% to $160 million.
The Electronics and Safety segment’s revenues increased 17% to $818 million. Adjusted operating income plunged 40% to $48 million.
Share Repurchases
In first-quarter 2017, Delphi Automotive repurchased 2.56 million shares for approximately $193 million. Following this, the company had almost $1.18 billion available for repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $547 million as of Mar 31, 2017 compared with $838 million as of Dec 31, 2016. Total debt amounted to $3.99 billion as of Mar 31, 2017 compared with $3.96 billion as of Dec 31, 2016.
In first-quarter 2017, operating cash flow increased to $290 million from $268 million in 2016. Capital expenditure totaled $215 million compared with $240 million a year ago.
Business Development
Delphi Automotive announced its decision to spin off its Powertrain Systems segment into a new, independent publicly traded company. The transaction is expected to be completed by Mar 2018, subject to customary market, regulatory and other conditions. Post the transaction, Delphi Automotive shareholders will own shares of both companies.
Outlook
For second-quarter 2017, Delphi Automotive revealed its revenue guidance of $4.15–$4.25 billion. Adjusted earnings per share are expected in the range of $1.62–$1.68.
Adjusted operating income is anticipated in the range of $560–$580 million (13.5–13.7% of sales) in second-quarter 2017.
For 2017, Delphi Automotive reiterated 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 $2.21–$2.31 billion (13.4–13.7% of sales) in 2017, up from the prior expectation of $2.19–$2.29 billion (13.3–13.5%). 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 outperformed the Zacks categorized Automotive - Original Equipment industry over the last three months. The company’s shares gained 6.3% over this period compared with 3.3% growth recorded by the industry.
Zacks Rank
Delphi Automotive currently carries a Zacks Rank #2 (Buy).
Other stocks worth considering in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Volkswagen AG and Tata Motors Ltd .
Allison Transmission has long-term expected growth rate of 11% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Volkswagen, also a Zacks Rank #2, has long-term expected growth rate of 16.8%.
Tata Motors has long-term expected growth rate of 27.9% and carries a Zacks Rank #2 as well.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>