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Adient's (ADNT) Q4 Earnings Surpass, Sales Lag Estimates
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Adient PLC (ADNT - Free Report) reported adjusted earnings per diluted share of $1.15 in fourth-quarter fiscal 2020, beating the Zacks Consensus Estimate of 96 cents. This outperformance can be attributed to the higher-than-anticipated revenues from the company’s Americas segment. Better-than-expected contribution from each segment also drove the results.
Moreover, the bottom line compares favorably with the year-ago earnings of 63 cents per share, marking a year-over-year surge of 82.5%.
During the reported quarter, Adient generated net sales of $3,597 million, down from the $3,921 million recorded in the prior-year quarter, due to disappointing global production volumes. The top-line figure also missed the Zacks Consensus Estimate of $3,644 million.
Adient currently operates through three reportable segments — Americas, which includes North America and South America; Europe, Middle East, and Africa (EMEA); and Asia Pacific/China (Asia).
For the reported quarter, the Americas segment recorded revenues of $1,796 million, down from the $1,925 million generated in the year-ago period. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,782 million. Adient posted adjusted EBITDA of $111 million in the fiscal fourth quarter, up from the $64 million recorded in the prior-year period, primarily on lower selling, general and administration (SG&A) costs as well as positive business performance, partially offset by the negative impact of lower volumes. The metric also topped the consensus mark of $79 million.
For the fiscal fourth quarter, the EMEA segment registered revenues of $1,398 million, dropping 7.1% year over year. However, the reported figure marginally surpassed the consensus mark of $1,396 million. Its quarterly EBITDA came in at $84 million, higher than the prior-year quarter’s profit of $47 million. This upside resulted from decreased SG&A costs and a positive business performance, partially negated by the adverse impact of dismal volumes. The metric also topped the consensus mark of $51 million.
For the September-end quarter, revenues in the Asia segment came in at $460 million compared with the year-earlier quarter’s $558 million. The figure, moreover, missed the Zacks Consensus Estimate of $497 million. The company’s adjusted EBITDA was $113 million compared with the $126 million reported in fourth-quarter fiscal 2019 on lackluster industry volumes, slightly muted by rise in seating equity income and reduced SG&A costs. However, the metric topped the consensus mark of $105 million.
Financial Position
Adient had cash and cash equivalents of $1,692 million as of Sep 30, 2020, compared with $924 million as of Sep 30, 2019. As of the same date, long-term debt amounted to $4,097 million, up from $3,708 billion as of Sep 30, 2019. Capital expenditure declined to $68 million in the fiscal fourth quarter from the $118 million recorded in the prior-year quarter.
Fiscal 2020 Highlights
For the fiscal year, the company registered adjusted loss per diluted share of 4 cents compared with the earnings of $1.63 reported in the previous fiscal year.
Net sales for fiscal 2020 came in at $12,670 million, down from the $16,526 million reported in the prior fiscal year.
Fiscal 2021 Outlook
For fiscal 2021, Adient expects revenues of $14.6-$15 billion. Adjusted EBITDA is anticipated in the band of $1-$1.1 billion. Moreover, the company projects free cash flow of upto 100 million.
Zacks Rank & Other Stocks to Consider
Adient currently carries a Zacks Rank #2 (Buy). Shares of the company have appreciated 55.8%, year to date, while the industry has witnessed a rise of 12.3%.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Adient's (ADNT) Q4 Earnings Surpass, Sales Lag Estimates
Adient PLC (ADNT - Free Report) reported adjusted earnings per diluted share of $1.15 in fourth-quarter fiscal 2020, beating the Zacks Consensus Estimate of 96 cents. This outperformance can be attributed to the higher-than-anticipated revenues from the company’s Americas segment. Better-than-expected contribution from each segment also drove the results.
Moreover, the bottom line compares favorably with the year-ago earnings of 63 cents per share, marking a year-over-year surge of 82.5%.
During the reported quarter, Adient generated net sales of $3,597 million, down from the $3,921 million recorded in the prior-year quarter, due to disappointing global production volumes. The top-line figure also missed the Zacks Consensus Estimate of $3,644 million.
Adient PLC Price, Consensus and EPS Surprise
Adient PLC price-consensus-eps-surprise-chart | Adient PLC Quote
Segmental Performance
Adient currently operates through three reportable segments — Americas, which includes North America and South America; Europe, Middle East, and Africa (EMEA); and Asia Pacific/China (Asia).
For the reported quarter, the Americas segment recorded revenues of $1,796 million, down from the $1,925 million generated in the year-ago period. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,782 million. Adient posted adjusted EBITDA of $111 million in the fiscal fourth quarter, up from the $64 million recorded in the prior-year period, primarily on lower selling, general and administration (SG&A) costs as well as positive business performance, partially offset by the negative impact of lower volumes. The metric also topped the consensus mark of $79 million.
For the fiscal fourth quarter, the EMEA segment registered revenues of $1,398 million, dropping 7.1% year over year. However, the reported figure marginally surpassed the consensus mark of $1,396 million. Its quarterly EBITDA came in at $84 million, higher than the prior-year quarter’s profit of $47 million. This upside resulted from decreased SG&A costs and a positive business performance, partially negated by the adverse impact of dismal volumes. The metric also topped the consensus mark of $51 million.
For the September-end quarter, revenues in the Asia segment came in at $460 million compared with the year-earlier quarter’s $558 million. The figure, moreover, missed the Zacks Consensus Estimate of $497 million. The company’s adjusted EBITDA was $113 million compared with the $126 million reported in fourth-quarter fiscal 2019 on lackluster industry volumes, slightly muted by rise in seating equity income and reduced SG&A costs. However, the metric topped the consensus mark of $105 million.
Financial Position
Adient had cash and cash equivalents of $1,692 million as of Sep 30, 2020, compared with $924 million as of Sep 30, 2019. As of the same date, long-term debt amounted to $4,097 million, up from $3,708 billion as of Sep 30, 2019. Capital expenditure declined to $68 million in the fiscal fourth quarter from the $118 million recorded in the prior-year quarter.
Fiscal 2020 Highlights
For the fiscal year, the company registered adjusted loss per diluted share of 4 cents compared with the earnings of $1.63 reported in the previous fiscal year.
Net sales for fiscal 2020 came in at $12,670 million, down from the $16,526 million reported in the prior fiscal year.
Fiscal 2021 Outlook
For fiscal 2021, Adient expects revenues of $14.6-$15 billion. Adjusted EBITDA is anticipated in the band of $1-$1.1 billion. Moreover, the company projects free cash flow of upto 100 million.
Zacks Rank & Other Stocks to Consider
Adient currently carries a Zacks Rank #2 (Buy). Shares of the company have appreciated 55.8%, year to date, while the industry has witnessed a rise of 12.3%.
Other top-ranked stocks in the auto sector include Autoliv, Inc. (ALV - Free Report) , Lear Corporation (LEA - Free Report) , Magna International (MGA - Free Report) , each sporting a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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