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Autoliv (ALV) Down 2.6% Since Q3 Earnings and Sales Miss

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Autoliv, Inc.’s (ALV - Free Report) shares have declined 2.6% since the company reported weaker-than-expected third-quarter 2021 results on Oct 22, before the opening bell. It reported adjusted earnings of 73 cents per share, which missed the Zacks Consensus Estimate of $1.02. Lower-than-anticipated revenues across both the segments led to the underperformance. The bottom line also declined 50.6% from third-quarter 2020.

The company reported net sales of $1,847 million for the quarter, down from the prior-year figure of $2,037 million. The top line also fell short of the Zacks Consensus Estimate of $1,889 million.

Autoliv, Inc. Price, Consensus and EPS Surprise

Autoliv, Inc. Price, Consensus and EPS Surprise

Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote

Segmental Highlights

Sales in the Airbags and Associated Products segment totaled $1,199 million, lagging the consensus mark of $1,420 million as well as contracting 9.9% year over year. Sales of all major products fell apart from knee airbags and front center bags, with inflatable curtains and side airbags, and steering wheels declining the most.

Sales in the Seatbelts and Associated Products segment totaled $647 million, down 8.3% from the prior-year quarter. Further, the figure fell short of the consensus mark of $733 million. Lower revenues primarily from Europe and America hurt the results.

Financial Position

Autoliv had cash and cash equivalents of $903 million as of Sep 30, 2021. Long-term debt totaled $1,687 million, decreasing from $1,712 million on Jun 30, 2021. Net capital expenditure increased to $112 million from the year-ago figure of $76 million. At quarter-end, free cash flow was $77 million, declining 72.2% on a year-over-year basis. During the quarter under review, Autoliv paid a quarterly dividend of 62 cents per share.

Revised Guidance

Amid supply-chain uncertainty due to chip crunch, Autoliv has lowered full-year 2021 forecasts. It expects full-year 2021 net sales to rise 11% year over year versus the prior guidance of 20-22% growth. Adjusted operating margin is expected at 8%, down from the previous view of 9-9.5%. Meanwhile, operating cash flow for 2021 is now anticipated at $700 million, down from the prior forecast of being on par with the 2020 level of $849 million.

Autoliv — which shares space with Magna (MGA - Free Report) , Meritor (MTOR - Free Report) and BorgWarner (BWA - Free Report) in the same industry — currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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