Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.84 per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.78. Higher-than-expected revenues across both its segments led to this outperformance. The bottom-line figure also increased from the prior-year quarter tally of $1.42.
The company reported net sales of $2,191 million in the quarter, down from the prior-year quarter figure of 2,193 million. However, the figure beat the Zacks Consensus Estimate of $2.14 billion.
Adjusted operating income inched up 1% year over year to $242 million. Adjusted operating margin from continuing operations was 11.1% in the reported quarter, higher than the prior-year quarter’s10.9%.
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,444 million, topping the Zacks Consensus Estimate of $1,428 million. However, revenues from the segment edged down around 1.37%, year over year. The company faced headwinds from lower inflator sales as well as bleak sales of inflatable curtains and side airbags, resulting in this decline. Nonetheless, solid performance of driver and knee airbags, steering wheels, and passenger airbags mainly stoked the segment’s growth in the fourth quarter.
Sales in the Seatbelts and Associated Products segment totaled $747.6 million, up 2.5% from the prior-year quarter and surpassed the consensus mark of $721 million. Stellar performance in China and Americas, partly offset by declines in Japan and South Korea, aided this outperformance.
Financial Position
Autoliv had cash and cash equivalents of $444.7 million as of Dec 31, 2019, lower than $615.8 million reported as of Dec 31, 2018. Long-term debt was $1.73 billion as of Dec 31, 2019, witnessing an increase from $1.61 billion as of Dec 31, 2018.The long-term debt-to-capital ratio stands at 44.85%.
Net capital expenditure decreased to $118 million from the year-ago figure of $133.4 million during the reported quarter.
Guidance
For 2020, Autoliv’s organic sales growth as well as net sales growth is expected to be 3-4%. Further, adjusted operating margin is projected at 9.5%.
Zacks Rank & Stocks to Consider
Autoliv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Auto-Tires-Trucks sector include Gentex Corporation (GNTX - Free Report) , Tesla, Inc. (TSLA - Free Report) and SPX Corporation (SPXC - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Gentex Corporation has an estimated earnings growth rate of 7.32% for 2020. The company’s shares have appreciated 40.3% in a year’s time.
Tesla has a projected earnings growth rate of 6,460% for the ongoing year. Its shares have surged 83.6% over the past year.
SPX has an expected earnings growth rate of 8.09% for the current year. The stock has rallied 73.2% in the past year.
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Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.84 per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.78. Higher-than-expected revenues across both its segments led to this outperformance. The bottom-line figure also increased from the prior-year quarter tally of $1.42.
The company reported net sales of $2,191 million in the quarter, down from the prior-year quarter figure of 2,193 million. However, the figure beat the Zacks Consensus Estimate of $2.14 billion.
Adjusted operating income inched up 1% year over year to $242 million. Adjusted operating margin from continuing operations was 11.1% in the reported quarter, higher than the prior-year quarter’s10.9%.
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,444 million, topping the Zacks Consensus Estimate of $1,428 million. However, revenues from the segment edged down around 1.37%, year over year. The company faced headwinds from lower inflator sales as well as bleak sales of inflatable curtains and side airbags, resulting in this decline. Nonetheless, solid performance of driver and knee airbags, steering wheels, and passenger airbags mainly stoked the segment’s growth in the fourth quarter.
Sales in the Seatbelts and Associated Products segment totaled $747.6 million, up 2.5% from the prior-year quarter and surpassed the consensus mark of $721 million. Stellar performance in China and Americas, partly offset by declines in Japan and South Korea, aided this outperformance.
Financial Position
Autoliv had cash and cash equivalents of $444.7 million as of Dec 31, 2019, lower than $615.8 million reported as of Dec 31, 2018. Long-term debt was $1.73 billion as of Dec 31, 2019, witnessing an increase from $1.61 billion as of Dec 31, 2018.The long-term debt-to-capital ratio stands at 44.85%.
Net capital expenditure decreased to $118 million from the year-ago figure of $133.4 million during the reported quarter.
Guidance
For 2020, Autoliv’s organic sales growth as well as net sales growth is expected to be 3-4%. Further, adjusted operating margin is projected at 9.5%.
Zacks Rank & Stocks to Consider
Autoliv currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Auto-Tires-Trucks sector include Gentex Corporation (GNTX - Free Report) , Tesla, Inc. (TSLA - Free Report) and SPX Corporation (SPXC - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Gentex Corporation has an estimated earnings growth rate of 7.32% for 2020. The company’s shares have appreciated 40.3% in a year’s time.
Tesla has a projected earnings growth rate of 6,460% for the ongoing year. Its shares have surged 83.6% over the past year.
SPX has an expected earnings growth rate of 8.09% for the current year. The stock has rallied 73.2% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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