Aptiv PLC (APTV - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings of $1.28 per share beat the Zacks Consensus Estimate by 23.1% and increased more than 100% on a year-over-year basis. The bottom line was hurt by the adverse impacts of pandemic lockdowns in China, continued global inflationary pressures and the worldwide semiconductor shortage.
Revenues of $4.6 billion surpassed the consensus mark by 7.7% and increased 26.3% year over year. The top line registered 31% growth in North America, 29% in Europe and 36% in Asia. Revenues were up 42% in China and 53% in South America.
Aptiv’s shares have declined 50.6% in the past year against the 66.7% loss of the industry it belongs to.
Other Quarterly Numbers
Signal and Power Solutions’ revenues of $3.4 billion were up 27% year over year. Advanced Safety and User Experience revenues increased 25% year over year to $1.2 billion.
Adjusted operating income came in at $525 million, up more than 100% from the figure reported in the year-ago quarter. Adjusted operating income margin came in at 11.4%, up 440 basis points year over year.
Aptiv exited the quarter with a cash and cash equivalents balance of $4.9 billion. Long-term debt was $6.3 billion compared with $6.4 billion at the end of the previous quarter.
Total available liquidity at the end of the quarter was $7.3 billion compared with $7.1 billion recorded at the end of the prior quarter. During the quarter, net cash generated from operating activities was $437 million.
2022 Outlook
The company expects revenues in the range of $17-$17.3 billion, the midpoint ($17.15 billion) of which is below the current Zacks Consensus Estimate of $17.21 billion.
Adjusted EPS is expected between $3.05 and $3.55, the midpoint ($3.3 billion) of which is above the current Zacks Consensus Estimate of $3.2.
The adjusted operating income margin is anticipated to be between 9% and 9.7%. Capital expenditures are expected to be at $800 million.
The adjusted EBITDA margin is expected to be between 12.7% and 13.4%. Adjusted effective tax rate is expected to be 13%.
Currently, Aptiv carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Aptiv PLC (APTV - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings of $1.28 per share beat the Zacks Consensus Estimate by 23.1% and increased more than 100% on a year-over-year basis. The bottom line was hurt by the adverse impacts of pandemic lockdowns in China, continued global inflationary pressures and the worldwide semiconductor shortage.
Revenues of $4.6 billion surpassed the consensus mark by 7.7% and increased 26.3% year over year. The top line registered 31% growth in North America, 29% in Europe and 36% in Asia. Revenues were up 42% in China and 53% in South America.
Aptiv’s shares have declined 50.6% in the past year against the 66.7% loss of the industry it belongs to.
Other Quarterly Numbers
Signal and Power Solutions’ revenues of $3.4 billion were up 27% year over year. Advanced Safety and User Experience revenues increased 25% year over year to $1.2 billion.
Adjusted operating income came in at $525 million, up more than 100% from the figure reported in the year-ago quarter. Adjusted operating income margin came in at 11.4%, up 440 basis points year over year.
Aptiv exited the quarter with a cash and cash equivalents balance of $4.9 billion. Long-term debt was $6.3 billion compared with $6.4 billion at the end of the previous quarter.
Total available liquidity at the end of the quarter was $7.3 billion compared with $7.1 billion recorded at the end of the prior quarter. During the quarter, net cash generated from operating activities was $437 million.
2022 Outlook
The company expects revenues in the range of $17-$17.3 billion, the midpoint ($17.15 billion) of which is below the current Zacks Consensus Estimate of $17.21 billion.
Adjusted EPS is expected between $3.05 and $3.55, the midpoint ($3.3 billion) of which is above the current Zacks Consensus Estimate of $3.2.
The adjusted operating income margin is anticipated to be between 9% and 9.7%. Capital expenditures are expected to be at $800 million.
The adjusted EBITDA margin is expected to be between 12.7% and 13.4%. Adjusted effective tax rate is expected to be 13%.
Currently, Aptiv carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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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