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Autoliv (ALV) Q2 Loss Narrower Than Expected, Sales Top
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Autoliv, Inc. (ALV - Free Report) reported second-quarter 2020 adjusted loss of $1.40 cents per share, a penny lower than the Zacks Consensus Estimate. Higher-than-anticipated revenues across both the segments led to narrower-than-expected loss.
However, the company reported earnings of $1.38 per share in the year-ago quarter. Per IHS Markit, global light vehicle production declined around 45% year over year during second-quarter 2020, in turn denting the firm’s earnings and sales.
The company reported net sales of $1,047.6 million in the quarter, down from the prior-year figure of $2,154.7 million. However, the figure beat the Zacks Consensus Estimate of $999 million.
Autoliv reported adjusted operating loss of $171.4 million against adjusted operating income of $183.2 million in the corresponding quarter of 2019. Adjusted operating margin from continuing operations was negative 16.4% in the reported quarter.
Sales in the Airbags and Associated Products segment totaled $653.8 million, surpassing the Zacks Consensus Estimate of $581 million. However, revenues from the segment were down around 54.5% year over year. Inflator revenues declined 75% year over year. Sales declined in all regions served by the company except China.
Sales in the Seatbelts and Associated Products segment totaled $393.8 million, down 45.2% from the prior-year quarter. However, the figure topped the consensus mark of $338 million. Weaker revenues from America, Europe, Japan and Rest of Asia negatively impacted the year over year performance. Nonetheless, seatbelts revenues increased 12% year over year in China during the reported quarter.
Financial Position
Autoliv had cash and cash equivalents of $1,223.2 million as of Jun 30, 2020. Long-term debt was $2,567 million, increasing from $2,209 million as of Mar 31, 2020. Net capital expenditure decreased to $64 million from the year-ago figure of $128 million.
Road Ahead
Global light vehicle production for the year is anticipated to be below 2019 levels, with high volatility in customer call-offs. The company expects to face headwinds in second-half 2020 amid lower inflator sales, and high depreciation and amortization costs. Nonetheless, cost-containment efforts are likely to provide some respite.
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Autoliv (ALV) Q2 Loss Narrower Than Expected, Sales Top
Autoliv, Inc. (ALV - Free Report) reported second-quarter 2020 adjusted loss of $1.40 cents per share, a penny lower than the Zacks Consensus Estimate. Higher-than-anticipated revenues across both the segments led to narrower-than-expected loss.
However, the company reported earnings of $1.38 per share in the year-ago quarter. Per IHS Markit, global light vehicle production declined around 45% year over year during second-quarter 2020, in turn denting the firm’s earnings and sales.
The company reported net sales of $1,047.6 million in the quarter, down from the prior-year figure of $2,154.7 million. However, the figure beat the Zacks Consensus Estimate of $999 million.
Autoliv reported adjusted operating loss of $171.4 million against adjusted operating income of $183.2 million in the corresponding quarter of 2019. Adjusted operating margin from continuing operations was negative 16.4% in the reported quarter.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $653.8 million, surpassing the Zacks Consensus Estimate of $581 million. However, revenues from the segment were down around 54.5% year over year. Inflator revenues declined 75% year over year. Sales declined in all regions served by the company except China.
Sales in the Seatbelts and Associated Products segment totaled $393.8 million, down 45.2% from the prior-year quarter. However, the figure topped the consensus mark of $338 million. Weaker revenues from America, Europe, Japan and Rest of Asia negatively impacted the year over year performance. Nonetheless, seatbelts revenues increased 12% year over year in China during the reported quarter.
Financial Position
Autoliv had cash and cash equivalents of $1,223.2 million as of Jun 30, 2020. Long-term debt was $2,567 million, increasing from $2,209 million as of Mar 31, 2020. Net capital expenditure decreased to $64 million from the year-ago figure of $128 million.
Road Ahead
Global light vehicle production for the year is anticipated to be below 2019 levels, with high volatility in customer call-offs. The company expects to face headwinds in second-half 2020 amid lower inflator sales, and high depreciation and amortization costs. Nonetheless, cost-containment efforts are likely to provide some respite.
Zacks Rank & Key Picks
Autoliv currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the auto sector include Garrett Motion Inc. (GTX - Free Report) , Strattec Security Corporation (STRT - Free Report) and LCI Industries (LCII - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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