Autoliv Inc. (ALV - Free Report) reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. This was due to lower-than-expected revenues from the Airbags and Associated Products, Seatbelts and Associated Products, the Americas, Europe, Japan and the Rest of Asia segments. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million in the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.
Autoliv reported an adjusted operating income of $173 million, surging 67% year over year. Adjusted operating margin from continuing operations was 7.5%, higher than 5.6% in the year-ago period. It was driven by a recovery in light vehicle production, cost discipline and pricing initiatives.
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,510 million, marginally missing the Zacks Consensus Estimate of $1,514 million. But, revenues soared 26% on a year-over-year basis. All major categories within the segment witnessed organic sales growth. The primary reason for the upside was a rise in sales of steering wheels and inflatable curtains, followed by passenger airbags and side airbags.
Sales in the Seatbelts and Associated Products segment totaled $792 million, up 22% from the prior-year quarter. Organic growth in China, followed by the Americas and Europe, was the contributing factor. The figure, however, missed the consensus mark of $841 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $794 million, which fell short of the consensus mark of $812 million. Sales in Europe totaled $552 million, lagging the Zacks Consensus Estimate of $628 million. Sales in China came in at $537 million, beating the consensus mark of $497 million. Sales in Japan and the Rest of Asia were $175 million and $243 million, missing the consensus mark of $220 million and $244 million, respectively.
Financial Position
Autoliv had cash and cash equivalents of $483 million as of Sep 30, 2022, down 46% year over year. Long-term debt totaled $1,037 million, decreasing from $1,687 million as of Sep 30, 2021. Net capital expenditure increased 47% to $164 million. At quarter-end, positive free cash flow was $68 million, down from $77 million in the year-ago period. During the quarter under review, Autoliv paid a quarterly dividend of 64 cents per share and repurchased 0.26 million shares at an average price of $78.04 per share.
2022 Guidance
The company forecasts full-year 2022 organic sales growth of around 15%, up from 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from the $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.
Autoliv, which belongs to the Zacks Auto-Tires-Trucks sector, competes with peers like Cummins (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Lithia Motors (LAD - Free Report) .
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 1.49%.
CarParts’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with the average surprise being 70%.
Lithia’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 7.73%.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Autoliv Inc. (ALV - Free Report) reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. This was due to lower-than-expected revenues from the Airbags and Associated Products, Seatbelts and Associated Products, the Americas, Europe, Japan and the Rest of Asia segments. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million in the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.
Autoliv reported an adjusted operating income of $173 million, surging 67% year over year. Adjusted operating margin from continuing operations was 7.5%, higher than 5.6% in the year-ago period. It was driven by a recovery in light vehicle production, cost discipline and pricing initiatives.
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,510 million, marginally missing the Zacks Consensus Estimate of $1,514 million. But, revenues soared 26% on a year-over-year basis. All major categories within the segment witnessed organic sales growth. The primary reason for the upside was a rise in sales of steering wheels and inflatable curtains, followed by passenger airbags and side airbags.
Sales in the Seatbelts and Associated Products segment totaled $792 million, up 22% from the prior-year quarter. Organic growth in China, followed by the Americas and Europe, was the contributing factor. The figure, however, missed the consensus mark of $841 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $794 million, which fell short of the consensus mark of $812 million. Sales in Europe totaled $552 million, lagging the Zacks Consensus Estimate of $628 million. Sales in China came in at $537 million, beating the consensus mark of $497 million. Sales in Japan and the Rest of Asia were $175 million and $243 million, missing the consensus mark of $220 million and $244 million, respectively.
Financial Position
Autoliv had cash and cash equivalents of $483 million as of Sep 30, 2022, down 46% year over year. Long-term debt totaled $1,037 million, decreasing from $1,687 million as of Sep 30, 2021. Net capital expenditure increased 47% to $164 million. At quarter-end, positive free cash flow was $68 million, down from $77 million in the year-ago period. During the quarter under review, Autoliv paid a quarterly dividend of 64 cents per share and repurchased 0.26 million shares at an average price of $78.04 per share.
2022 Guidance
The company forecasts full-year 2022 organic sales growth of around 15%, up from 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from the $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.
Autoliv, which belongs to the Zacks Auto-Tires-Trucks sector, competes with peers like Cummins (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Lithia Motors (LAD - Free Report) .
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 1.49%.
CarParts’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with the average surprise being 70%.
Lithia’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 7.73%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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