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Adient (ADNT) Q1 Earnings Beat, Sales Fall Shy of Estimates
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Adient (ADNT - Free Report) reported adjusted earnings per share of $1.71 for first-quarter fiscal 2021, beating the Zacks Consensus Estimate of 95 cents on better-than-expected contribution across all segments. Moreover, the bottom line compared favorably with the year-ago earnings of 96 cents per share, marking a surge of 78%. During the reported quarter, Adient generated net sales of $3,848 million, down from $3,936 million recorded in the prior-year period. The top-line figure also missed the Zacks Consensus Estimate of $3,918 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 $1,737 million, down from $1,859 million generated in the year-ago period. Adient posted adjusted EBITDA of $132 million for the fiscal first quarter, up from $94 million recorded in the prior-year period, primarily on sustained improvement in the Metals business, and lower freight as well as ops waste. The metric also topped the consensus mark of $89 million.
For the fiscal first quarter, the EMEA segment registered revenues of $1,604 million, rising 2.5% year over year. Its quarterly EBITDA came in at $114 million, reflecting a jump from the prior-year profit of $49 million and topping the consensus mark of $72 million. This upside resulted from decreased SG&A and launch costs, as well as persistent improvement in the metals business.
For the December-end quarter, revenues in the Asia segment came in at $554 million compared with the year-earlier quarter’s $572 million. The company’s adjusted EBITDA was $151 million, lower than the $177 million reported in first-quarter fiscal 2020 on reduced volumes and the absence of Interiors equity income. However, the metric topped the consensus mark of $146 million.
Financial Position
Adient had cash and cash equivalents of $1,820 million as of Dec 31, 2020 compared with $1,692 million on Sep 30, 2019. As of Dec 31, long-term debt amounted to $4,342 million, up from $4,097 billion on Sep 30, 2019. Capital expenditure declined to $71 million for the fiscal first quarter from $91 million recorded in the prior-year period.
2021 View Intact
The company reiterated its guidance for fiscal 2021. Adient expects revenues within $14.6-$15 billion. Adjusted EBITDA is anticipated in the band of $1-$1.1 billion. Moreover, the company projects free cash flow of up to 100 million. Adient — which shares space with Magna International (MGA - Free Report) , Meritor and American Axle & Manufacturing (AXL - Free Report) — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Adient (ADNT) Q1 Earnings Beat, Sales Fall Shy of Estimates
Adient (ADNT - Free Report) reported adjusted earnings per share of $1.71 for first-quarter fiscal 2021, beating the Zacks Consensus Estimate of 95 cents on better-than-expected contribution across all segments. Moreover, the bottom line compared favorably with the year-ago earnings of 96 cents per share, marking a surge of 78%. During the reported quarter, Adient generated net sales of $3,848 million, down from $3,936 million recorded in the prior-year period. The top-line figure also missed the Zacks Consensus Estimate of $3,918 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 $1,737 million, down from $1,859 million generated in the year-ago period. Adient posted adjusted EBITDA of $132 million for the fiscal first quarter, up from $94 million recorded in the prior-year period, primarily on sustained improvement in the Metals business, and lower freight as well as ops waste. The metric also topped the consensus mark of $89 million.
For the fiscal first quarter, the EMEA segment registered revenues of $1,604 million, rising 2.5% year over year. Its quarterly EBITDA came in at $114 million, reflecting a jump from the prior-year profit of $49 million and topping the consensus mark of $72 million. This upside resulted from decreased SG&A and launch costs, as well as persistent improvement in the metals business.
For the December-end quarter, revenues in the Asia segment came in at $554 million compared with the year-earlier quarter’s $572 million. The company’s adjusted EBITDA was $151 million, lower than the $177 million reported in first-quarter fiscal 2020 on reduced volumes and the absence of Interiors equity income. However, the metric topped the consensus mark of $146 million.
Financial Position
Adient had cash and cash equivalents of $1,820 million as of Dec 31, 2020 compared with $1,692 million on Sep 30, 2019. As of Dec 31, long-term debt amounted to $4,342 million, up from $4,097 billion on Sep 30, 2019. Capital expenditure declined to $71 million for the fiscal first quarter from $91 million recorded in the prior-year period.
2021 View Intact
The company reiterated its guidance for fiscal 2021. Adient expects revenues within $14.6-$15 billion. Adjusted EBITDA is anticipated in the band of $1-$1.1 billion. Moreover, the company projects free cash flow of up to 100 million. Adient — which shares space with Magna International (MGA - Free Report) , Meritor and American Axle & Manufacturing (AXL - Free Report) — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>