Shares of Adient plc (ADNT - Free Report) have declined 15.7% in a day’s trading, following the first-quarter fiscal 2019 earnings release. In the reported quarter,the company’s adjusted earnings per share were31 cents, missing the Zacks Consensus Estimate of 48 cents. The adjusted bottom-line figure in the year-ago quarter was $1.05 per share. The decline was due to negative business performance, owing to launch inefficiencies.
During the quarter under review, Adient reported net sales of $4.16 billion, a decline from $4.2 billion recorded in first-quarter fiscal 2018. Further, the top line missed the Zacks Consensus Estimate of $4.17 billion.
Net income attributed to Adient was $17 million against net loss of $216 million in the prior-year quarter.
Adient PLC Price, Consensus and EPS Surprise
Quarter in Detail
During the reported quarter, the Seating segment of the company reported net sales of $3.7 billion, down from $3.8billion in first-quarter fiscal 2018. The segment’s adjusted EBIDTA was $261 million compared with $354 million recorded in the prior-year quarter.
The Seat Structures & Mechanisms (SS&M) segment reported net sales of $727 million, up from $718 million in the prior-year quarter. Adjusted EBITDA for this segment amounted to negative $72 million compared withnegative $82 million in the firstquarter of the previous fiscal year.
Financials
Adient had cash and cash equivalents of $406 million as of Dec 31, 2018, compared with $687 million as of Sep 30, 2018.As of the same date, net debt amounted to $3 billion, up from $2.7 billion as of Sep 30, 2018.
In the first three months of fiscal 2019, cash used by operating activities was $128 million, almost similar to the same period of fiscal 2018. Capital expenditure rose to $144 million from $143 million recorded in the first quarter of the priorfiscal year.
Zacks Rank & Stocks to Consider
Adient currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are General Motors Company (GM - Free Report) , Cooper Tire & Rubber Company , and Genuine Parts Company (GPC - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors has an expected long-term growth rate of 8.5%. Share price of the company has increased 3.1% in the past six months.
Cooper Tire has an expected long-term growth rate of 4%. Over the past six months, shares of the company have gained 11.1%.
Genuine Parts has an expected long-term growth rate of 5%. Shares of the company have gained 3.6% in the past six months.
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Shares of Adient plc (ADNT - Free Report) have declined 15.7% in a day’s trading, following the first-quarter fiscal 2019 earnings release. In the reported quarter,the company’s adjusted earnings per share were31 cents, missing the Zacks Consensus Estimate of 48 cents. The adjusted bottom-line figure in the year-ago quarter was $1.05 per share. The decline was due to negative business performance, owing to launch inefficiencies.
During the quarter under review, Adient reported net sales of $4.16 billion, a decline from $4.2 billion recorded in first-quarter fiscal 2018. Further, the top line missed the Zacks Consensus Estimate of $4.17 billion.
Net income attributed to Adient was $17 million against net loss of $216 million in the prior-year quarter.
Adient PLC Price, Consensus and EPS Surprise
Quarter in Detail
During the reported quarter, the Seating segment of the company reported net sales of $3.7 billion, down from $3.8billion in first-quarter fiscal 2018. The segment’s adjusted EBIDTA was $261 million compared with $354 million recorded in the prior-year quarter.
The Seat Structures & Mechanisms (SS&M) segment reported net sales of $727 million, up from $718 million in the prior-year quarter. Adjusted EBITDA for this segment amounted to negative $72 million compared withnegative $82 million in the firstquarter of the previous fiscal year.
Financials
Adient had cash and cash equivalents of $406 million as of Dec 31, 2018, compared with $687 million as of Sep 30, 2018.As of the same date, net debt amounted to $3 billion, up from $2.7 billion as of Sep 30, 2018.
In the first three months of fiscal 2019, cash used by operating activities was $128 million, almost similar to the same period of fiscal 2018. Capital expenditure rose to $144 million from $143 million recorded in the first quarter of the priorfiscal year.
Zacks Rank & Stocks to Consider
Adient currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are General Motors Company (GM - Free Report) , Cooper Tire & Rubber Company , and Genuine Parts Company (GPC - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors has an expected long-term growth rate of 8.5%. Share price of the company has increased 3.1% in the past six months.
Cooper Tire has an expected long-term growth rate of 4%. Over the past six months, shares of the company have gained 11.1%.
Genuine Parts has an expected long-term growth rate of 5%. Shares of the company have gained 3.6% in the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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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