We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Delphi Automotive (DLPH) Q2 Earnings & Revenues Top Estimates
Read MoreHide Full Article
Delphi Automotive plc posted $1.71 per share of adjusted earnings in the second quarter of 2017, up from $1.59 earned in the prior-year quarter. Earnings per share surpassed the Zacks Consensus Estimate of $1.65.
Adjusted net income increased to $457 million from $435 million a year ago. This figure includes advantageous impact of reduced share count and lower tax rate.
Revenues were $4.32 billion and surpassed the Zacks Consensus Estimate of $4.2 billion.
Revenues increased 2.66% year over year, excluding the impact of currency exchange, commodity movements, acquisitions and divestitures. The upside was led by a performance improvement of 15% in South America, 3% in Europe, 15% in Asia and a stable performance in North America.
Adjusted operating income rose to $587 million from $580 million in the third quarter of 2016. Adjusted operating margin decreased to 13.6% from 13.8% in the year-ago quarter. This slight decline in margins can be attributed to the divestiture of Mechatronics and continued investments for growth. These were partly offset by sales growth and cost reduction initiatives.
Delphi Automotive PLC Price, Consensus and EPS Surprise
In the Electrical/Electronic Architecture segment, revenues declined to $2.35 billion in the reported quarter. Also, adjusted operating income slid 3% to $333 million.
In the Powertrain Systems segment, revenues rose 4% to $1.2 billion. Adjusted operating income surged 21% to $162 million.
The Electronics and Safety segment’s revenues increased 10% to $821 million. However, adjusted operating income declined 9% to $92 million.
Share Repurchases
In second-quarter 2017, Delphi Automotive repurchased 1.09 million shares for approximately $95 million. Following this, the company had approximately $1.1 billion available for future repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $792 million as of Jun 30, 2017 compared with $838 million as of Dec 31, 2016. Total debt increased to $4.1 billion as of Jun 30, 2017 compared with $3.96 billion as of Dec 31, 2016.
In second-quarter 2017, operating cash flow increased to $599 million from $575 million in 2016. Capital expenditure totaled $178 million compared with $172 million a year ago.
Outlook
For third-quarter 2017, Delphi Automotive decreased its revenue guidance to $4-$4.1 billion, compared with the previous expectation of $4.15–$4.25 billion. Adjusted earnings per share are expected to be in the $1.52-$1.58 range, comapred with the previous guidance of $1.62–$1.68.
Adjusted operating income is anticipated in the range of $520-$540 million (13.1% of sales) comapred with the previous guidance of $560–$580 million (13.5–13.7% of sales) in third-quarter 2017.
For 2017, Delphi Automotive increased its revenue expectation to $16.85-$17.05 billion, compared with the previous expectation of $16.5–$16.9 billion. Adjusted earnings per share are expected in the range of $6.55-$6.75 compared with the previous guidance of $6.40–$6.70.
Price Performance
Delphi Automotive shares have surged 21.8% in the last six months, substantially outperforming the 10.6% increase of the industry it belongs to.
Zacks Rank & Other Key Picks
Delphi Automotive currently carries a Zacks Rank #3 (Hold).
Wabco has expected long-term earnings-per-share growth rate of 17.5%.
Westport Fuel has expected earnings growth rate of 30% over the long term.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Delphi Automotive (DLPH) Q2 Earnings & Revenues Top Estimates
Delphi Automotive plc posted $1.71 per share of adjusted earnings in the second quarter of 2017, up from $1.59 earned in the prior-year quarter. Earnings per share surpassed the Zacks Consensus Estimate of $1.65.
Adjusted net income increased to $457 million from $435 million a year ago. This figure includes advantageous impact of reduced share count and lower tax rate.
Revenues were $4.32 billion and surpassed the Zacks Consensus Estimate of $4.2 billion.
Revenues increased 2.66% year over year, excluding the impact of currency exchange, commodity movements, acquisitions and divestitures. The upside was led by a performance improvement of 15% in South America, 3% in Europe, 15% in Asia and a stable performance in North America.
Adjusted operating income rose to $587 million from $580 million in the third quarter of 2016. Adjusted operating margin decreased to 13.6% from 13.8% in the year-ago quarter. This slight decline in margins can be attributed to the divestiture of Mechatronics and continued investments for growth. These were partly offset by sales growth and cost reduction initiatives.
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 declined to $2.35 billion in the reported quarter. Also, adjusted operating income slid 3% to $333 million.
In the Powertrain Systems segment, revenues rose 4% to $1.2 billion. Adjusted operating income surged 21% to $162 million.
The Electronics and Safety segment’s revenues increased 10% to $821 million. However, adjusted operating income declined 9% to $92 million.
Share Repurchases
In second-quarter 2017, Delphi Automotive repurchased 1.09 million shares for approximately $95 million. Following this, the company had approximately $1.1 billion available for future repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $792 million as of Jun 30, 2017 compared with $838 million as of Dec 31, 2016. Total debt increased to $4.1 billion as of Jun 30, 2017 compared with $3.96 billion as of Dec 31, 2016.
In second-quarter 2017, operating cash flow increased to $599 million from $575 million in 2016. Capital expenditure totaled $178 million compared with $172 million a year ago.
Outlook
For third-quarter 2017, Delphi Automotive decreased its revenue guidance to $4-$4.1 billion, compared with the previous expectation of $4.15–$4.25 billion. Adjusted earnings per share are expected to be in the $1.52-$1.58 range, comapred with the previous guidance of $1.62–$1.68.
Adjusted operating income is anticipated in the range of $520-$540 million (13.1% of sales) comapred with the previous guidance of $560–$580 million (13.5–13.7% of sales) in third-quarter 2017.
For 2017, Delphi Automotive increased its revenue expectation to $16.85-$17.05 billion, compared with the previous expectation of $16.5–$16.9 billion. Adjusted earnings per share are expected in the range of $6.55-$6.75 compared with the previous guidance of $6.40–$6.70.
Price Performance
Delphi Automotive shares have surged 21.8% in the last six months, substantially outperforming the 10.6% increase of the industry it belongs to.
Zacks Rank & Other Key Picks
Delphi Automotive currently carries a Zacks Rank #3 (Hold).
Some other stocks worth considering from the automobile space are, Fox Factory Holding Corp. (FOXF - Free Report) , Wabco Holdings Inc. and Westport Fuel Systems Inc. (WPRT - Free Report) , all currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has long-term growth rate of 15.9%.
Wabco has expected long-term earnings-per-share growth rate of 17.5%.
Westport Fuel has expected earnings growth rate of 30% over the long term.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>