Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.35 per share in third-quarter 2018, missing the Zacks Consensus Estimate of $1.58. Moreover, the bottom line declined from the prior-year quarter’s tally of $1.47.
During the quarter under review, Autoliv reported net sales from continuing operations of $2.03 billion, reflecting a 4.1% rise year over year. While the Zacks Consensus Estimate for the same was pegged at $2.07 billion. Quarterly organic sales grew 6.4%, majorly driven by a 22% organic sales increase in Americas. However, this uptrend was partly offset by weak demand for light vehicle production in China and Europe.
Operating income from continuing operations gained 15.1% to $193 million. Adjusted operating margin from continuing operations was 9.5% in the reported quarter, higher than the prior-year quarter’s figure of 8.6%.
Autoliv, Inc. Price, Consensus and EPS Surprise
Financial Position
Autoliv had cash and cash equivalents of $534 million as of Sep 30, 2018, lower than $958 million reported as of Sep 30, 2017. Long-term debt was $1.68 billion as of Sep 30, 2018, witnessing a rise from $1.31 billion as of Sep 30, 2017.
At the end of third-quarter 2018, the company’s operating cash flow increased to $238 million compared with the year-ago figure of $218 million. Net capital expenditure decreased to $117 million from the year-ago figure of $142 million.
Guidance
For 2018, Autoliv anticipates organic sales growth for continuing operations to be around 6%. Combined with a positive currency translation of approximately 2%, the company expects a consolidated sales boost of approximately 8%. The previous anticipated figure was 10%, which included the effect of currency conversion. Further, the adjusted operating margin for continuing operations is projected to be around 10.5% compared with the prior guidance of 11%.
Zacks Rank and Stocks to Consider
Autoliv currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , CarMax, Inc. (KMX - Free Report) and Advance Auto Parts, Inc. (AAP - Free Report) . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both CarMax and Advance Auto carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have rallied 12.7%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have climbed 12.1%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have soared 43.8% over the past six months.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.35 per share in third-quarter 2018, missing the Zacks Consensus Estimate of $1.58. Moreover, the bottom line declined from the prior-year quarter’s tally of $1.47.
During the quarter under review, Autoliv reported net sales from continuing operations of $2.03 billion, reflecting a 4.1% rise year over year. While the Zacks Consensus Estimate for the same was pegged at $2.07 billion. Quarterly organic sales grew 6.4%, majorly driven by a 22% organic sales increase in Americas. However, this uptrend was partly offset by weak demand for light vehicle production in China and Europe.
Operating income from continuing operations gained 15.1% to $193 million. Adjusted operating margin from continuing operations was 9.5% in the reported quarter, higher than the prior-year quarter’s figure of 8.6%.
Autoliv, Inc. Price, Consensus and EPS Surprise
Financial Position
Autoliv had cash and cash equivalents of $534 million as of Sep 30, 2018, lower than $958 million reported as of Sep 30, 2017. Long-term debt was $1.68 billion as of Sep 30, 2018, witnessing a rise from $1.31 billion as of Sep 30, 2017.
At the end of third-quarter 2018, the company’s operating cash flow increased to $238 million compared with the year-ago figure of $218 million. Net capital expenditure decreased to $117 million from the year-ago figure of $142 million.
Guidance
For 2018, Autoliv anticipates organic sales growth for continuing operations to be around 6%. Combined with a positive currency translation of approximately 2%, the company expects a consolidated sales boost of approximately 8%. The previous anticipated figure was 10%, which included the effect of currency conversion. Further, the adjusted operating margin for continuing operations is projected to be around 10.5% compared with the prior guidance of 11%.
Zacks Rank and Stocks to Consider
Autoliv currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , CarMax, Inc. (KMX - Free Report) and Advance Auto Parts, Inc. (AAP - Free Report) . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both CarMax and Advance Auto carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have rallied 12.7%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have climbed 12.1%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have soared 43.8% over the past six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks 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.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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