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Adient (ADNT) Down 13.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Adient (ADNT - Free Report) . Shares have lost about 13.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Adient due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Adient's Q3 Earnings & Revenues Top Estimates, Down Y/Y
Adient reported adjusted earnings per share of 38 cents in the third quarter of fiscal 2019, beating the Zacks Consensus Estimate of 31 cents. The adjusted bottom-line figure in the year-ago quarter was $1.45 per share.
Reportedly, quarterly net loss attributable to Adient was $321 million compared with net income of $54 million in the prior-year quarter.
During the quarter under review, the company reported net sales of $4.2 billion, marking a decline from $4.5 billion recorded in third-quarter fiscal 2018. However, the top line surpassed the Zacks Consensus Estimate of $4.1 billion.
During the reported quarter, Adient’s Seating and Seat Structures & Mechanisms (SS&M) segment’s net sales were $1.86 billion, down from $2.40 billion in third-quarter fiscal 2018. Further, the Interior segment reported net sales of $1.75 billion, down from $2.35 billion in the prior-year quarter.
Segment Results
During the third quarter, the company realigned its organizational structure to manage business on the basis of geographical regions. The three reportable segments Adient currently operates are Americas, which includes North America and South America; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific/China ("Asia").
In the Americas, the company generated adjusted EBITDA of $69 million in third-quarter fiscal 2019 compared with $99 million recorded in the prior-year quarter. This plunge was due to negative business performance, mix and increased SG&A costs.
In EMEA, Adient’s quarterly adjusted EBITDA was $53 million compared with $97 million in the prior-year quarter. The plunge was due to lower volume, negative impact of foreign currencies and product launch inefficiencies.
In Asia, the company’s quarterly adjusted EBITDA was $110 million compared with $146 million in the third quarter of fiscal 2018. This decline was driven by lower volume and equity income.
Financials
Adient had cash and cash equivalents of $1.02 billion as of Jun 30, 2019, compared with $687 million as of Sep 30, 2018. As of the same date, net debt amounted to $2.75 billion, slightly up from $2.74 billion as of Sep 30, 2018.
In the third quarter, cash inflow by operating activities was $266 million, compared with $390 million in the same period of fiscal 2018. Capital expenditure declined to $98 million from $138 million recorded in the prior-year quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -39.56% due to these changes.
VGM Scores
Currently, Adient has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Adient has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Adient (ADNT) Down 13.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Adient (ADNT - Free Report) . Shares have lost about 13.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Adient due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Adient's Q3 Earnings & Revenues Top Estimates, Down Y/Y
Adient reported adjusted earnings per share of 38 cents in the third quarter of fiscal 2019, beating the Zacks Consensus Estimate of 31 cents. The adjusted bottom-line figure in the year-ago quarter was $1.45 per share.
Reportedly, quarterly net loss attributable to Adient was $321 million compared with net income of $54 million in the prior-year quarter.
During the quarter under review, the company reported net sales of $4.2 billion, marking a decline from $4.5 billion recorded in third-quarter fiscal 2018. However, the top line surpassed the Zacks Consensus Estimate of $4.1 billion.
During the reported quarter, Adient’s Seating and Seat Structures & Mechanisms (SS&M) segment’s net sales were $1.86 billion, down from $2.40 billion in third-quarter fiscal 2018. Further, the Interior segment reported net sales of $1.75 billion, down from $2.35 billion in the prior-year quarter.
Segment Results
During the third quarter, the company realigned its organizational structure to manage business on the basis of geographical regions. The three reportable segments Adient currently operates are Americas, which includes North America and South America; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific/China ("Asia").
In the Americas, the company generated adjusted EBITDA of $69 million in third-quarter fiscal 2019 compared with $99 million recorded in the prior-year quarter. This plunge was due to negative business performance, mix and increased SG&A costs.
In EMEA, Adient’s quarterly adjusted EBITDA was $53 million compared with $97 million in the prior-year quarter. The plunge was due to lower volume, negative impact of foreign currencies and product launch inefficiencies.
In Asia, the company’s quarterly adjusted EBITDA was $110 million compared with $146 million in the third quarter of fiscal 2018. This decline was driven by lower volume and equity income.
Financials
Adient had cash and cash equivalents of $1.02 billion as of Jun 30, 2019, compared with $687 million as of Sep 30, 2018. As of the same date, net debt amounted to $2.75 billion, slightly up from $2.74 billion as of Sep 30, 2018.
In the third quarter, cash inflow by operating activities was $266 million, compared with $390 million in the same period of fiscal 2018. Capital expenditure declined to $98 million from $138 million recorded in the prior-year quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -39.56% due to these changes.
VGM Scores
Currently, Adient has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Adient has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.