Adient ( ADNT Quick Quote ADNT - Free Report) reported adjusted earnings per share of $1.15 for second-quarter fiscal 2021, breezing past the Zacks Consensus Estimate of 59 cents on better-than-expected contribution across EMEA and Asia markets. Moreover, the bottom line compared favorably with the year-ago earnings of 62 cents per share, marking a surge of 85.5%. For the reported quarter, Adient generated net sales of $3,819 million, up from $3,511 million recorded in the prior-year period. The top-line figure also topped the Zacks Consensus Estimate of $3,541 million. 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 $1,644 million compared with $1,641 million generated in the year-ago period. Adient posted adjusted EBITDA of $64 million for the fiscal second quarter, down from $106 million recorded in the prior-year period, primarily owing to operational inefficiencies amid supply chain disruptions.
For the fiscal second quarter, the EMEA segment registered revenues of $1,636 million, rising 10% year over year. Its quarterly EBITDA came in at $141 million, reflecting a jump from the prior-year profit of $62 million and topping the consensus mark of $69 million. This upside resulted from decreased SG&A and launch costs as well as persistent improvement in the metals business.
For the March-end quarter, revenues in the Asia segment came in at $588 million, up from $444 million generated in the year-ago quarter. The company’s adjusted EBITDA was $121 million, increasing from $63 million reported in first-quarter fiscal 2020 and surpassing the consensus mark of $70 million. The results were aided by improved volume and mix in China along with lower launch and freight expenses.
Adient had cash and cash equivalents of $984 million as of Mar 31, 2020 compared with $1,692 million on Sep 30, 2019. As of Mar 31, long-term debt amounted to $3,646 million, down from $4,097 billion on Sep 30, 2019. Capital expenditure declined to $55 million for the fiscal second quarter from $94 million recorded in the prior-year period.
Adient expects fiscal 2021 revenues within $14.6-$15 billion. Adjusted EBITDA is anticipated in the band of $1-$1.1 billion. The company projects free cash flow in the band of $50-$150 million. Adient — which shares space with
Magna International ( MGA Quick Quote MGA - Free Report) , Meritor ( MTOR Quick Quote MTOR - Free Report) and American Axle & Manufacturing ( AXL Quick Quote AXL - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. +1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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