Aptiv PLC (APTV - Free Report) reported better-than-expected second-quarter 2023 results.
Adjusted earnings of $1.25 per share beat the Zacks Consensus Estimate by 21.4% and increased more than 100% year over year. Revenues of $5.2 billion surpassed the Zacks Consensus Estimate by 10.1% and increased 28.2% year over year.
It also registered 28% growth in Europe, 19% in North America, 33% in Asia, including 41% in China, and 20% in South America.
Aptiv‘s shares have gained 15.5% over the past three months compared with the 25% rally of the industry it belongs to.
Other Quarterly Numbers
Signal and Power Solutions’ revenues of $3.7 billion improved 21% year over year and beat our estimate of $3.4 billion. Advanced Safety and User Experience segment’s revenues increased 49% year over year to $1.5 billion and surpassed our estimate of $1.1 billion.
Adjusted operating income was $530 million, up more than 100% from the figure reported in the year-ago quarter. This compares favorably with our expectation of an adjusted operating income of $472 million.
Adjusted operating income margin was 10.2%, up 490 basis points year over year. This compares with our expectation of an adjusted operating margin of 10.5%, up 520 bps year over year.
Aptiv exited the quarter with a cash and cash equivalent balance of $1.3 billion compared with the prior quarter’s $1.1 billion. Long-term debt was $6.5 billion, in line with the previous quarter.
Total available liquidity at the end of the quarter was $3.8 billion compared with $3.6 billion recorded at the end of the prior quarter. In the quarter, the company generated $535 million in cash from operating activities.
2023 Outlook
Aptiv expects revenues to be $19.95-$20.25 billion, higher than the Zacks Consensus Estimate of $19.31 billion.
Adjusted EPS is expected between $4.6 and $4.9, higher than the Zacks Consensus Estimate of $4.39.
The adjusted operating income margin is anticipated between 10.4% and 10.7%. Capital expenditure is expected to be $950 million.
The adjusted EBITDA margin is expected between 13.8% and 14.1%. Adjusted effective tax rate is expected to be 12.5%.
Currently, Aptiv carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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Aptiv PLC (APTV - Free Report) reported better-than-expected second-quarter 2023 results.
Adjusted earnings of $1.25 per share beat the Zacks Consensus Estimate by 21.4% and increased more than 100% year over year. Revenues of $5.2 billion surpassed the Zacks Consensus Estimate by 10.1% and increased 28.2% year over year.
It also registered 28% growth in Europe, 19% in North America, 33% in Asia, including 41% in China, and 20% in South America.
Aptiv‘s shares have gained 15.5% over the past three months compared with the 25% rally of the industry it belongs to.
Other Quarterly Numbers
Signal and Power Solutions’ revenues of $3.7 billion improved 21% year over year and beat our estimate of $3.4 billion. Advanced Safety and User Experience segment’s revenues increased 49% year over year to $1.5 billion and surpassed our estimate of $1.1 billion.
Adjusted operating income was $530 million, up more than 100% from the figure reported in the year-ago quarter. This compares favorably with our expectation of an adjusted operating income of $472 million.
Adjusted operating income margin was 10.2%, up 490 basis points year over year. This compares with our expectation of an adjusted operating margin of 10.5%, up 520 bps year over year.
Aptiv exited the quarter with a cash and cash equivalent balance of $1.3 billion compared with the prior quarter’s $1.1 billion. Long-term debt was $6.5 billion, in line with the previous quarter.
Total available liquidity at the end of the quarter was $3.8 billion compared with $3.6 billion recorded at the end of the prior quarter. In the quarter, the company generated $535 million in cash from operating activities.
2023 Outlook
Aptiv expects revenues to be $19.95-$20.25 billion, higher than the Zacks Consensus Estimate of $19.31 billion.
Adjusted EPS is expected between $4.6 and $4.9, higher than the Zacks Consensus Estimate of $4.39.
The adjusted operating income margin is anticipated between 10.4% and 10.7%. Capital expenditure is expected to be $950 million.
The adjusted EBITDA margin is expected between 13.8% and 14.1%. Adjusted effective tax rate is expected to be 12.5%.
Currently, Aptiv carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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