We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Autoliv, Inc. (ALV - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.30 per share, on par with the Zacks Consensus Estimate. The bottom line fell 40.6% from $2.19 per share recorded in the year-ago quarter.
The company reported net sales of $2,119 million in the quarter, which missed the Zacks Consensus Estimate of $2,249.7 million. The top line also declined 15.8% from the prior-year’s $2,516.8 million. Lower revenues, primarily from Europe and North America, hurt the results. Business was also affected by the ongoing semiconductor shortage and the higher cost of raw materials.
Autoliv reported adjusted operating income of $177 million, down 43.2% year over year. Adjusted operating margin from continuing operations was 8.3%, lower than 12.4% in the year-ago period.
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,408 million, surpassing the Zacks Consensus Estimate of $1,386 million. However, revenues came down nearly 14% on a year-over-year basis. All major categories within the segment, except the front center airbags, witnessed a decline in sales. The largest driver of reduced sales was inflatable curtains and side airbags.
Sales in the Seatbelts and Associated Products segment totaled $711 million, down 19.2% from the prior-year quarter. The figure also missed the consensus mark of $775 million. Curtailed revenues from North America and Europe mainly led to the decline.
Financial Position
Autoliv had cash and cash equivalents of $969 million as of Dec 31, 2021, down 17.7% year over year. Long-term debt totaled $1,662 million, decreasing 21.2% from $2,110 million as of Dec 31, 2020. Net capital expenditure increased to $154 million from $112 million. At quarter-end, free cash flow was $164 million, spiraling down 54%. During the quarter under review, Autoliv raised the quarterly dividend to 64 cents per share from 62 cents in the previous quarter.
Road Ahead
Autoliv braces itself for a somewhat challenging year ahead. It expects raw material costs to rise in the current year with anticipation of operating margin to be impacted. However, customer recoveries may offset some raw material cost increases, mainly in the second half of the year. It will follow strict cost discipline in 2022, including executing capacity alignments, footprint optimization and strategic initiatives.
With a forecast of 9% growth in light vehicle production aided by a positive regional mix and product launches, ALV expects to grow organically by around 20% in 2022, generating an adjusted operating margin of 9.5% for full-year 2022.
Zacks Rank & Key Picks
Currently, Autoliv carries a Zacks Rank #4 (Sell). ALV’s shares have gained 6.7% over the past year against the industry’s 45.5% decline.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 0.7% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 37.6% over a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Autoliv (ALV) Meets Q4 Earnings Estimates, Hikes Dividend
Autoliv, Inc. (ALV - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.30 per share, on par with the Zacks Consensus Estimate. The bottom line fell 40.6% from $2.19 per share recorded in the year-ago quarter.
The company reported net sales of $2,119 million in the quarter, which missed the Zacks Consensus Estimate of $2,249.7 million. The top line also declined 15.8% from the prior-year’s $2,516.8 million. Lower revenues, primarily from Europe and North America, hurt the results. Business was also affected by the ongoing semiconductor shortage and the higher cost of raw materials.
Autoliv reported adjusted operating income of $177 million, down 43.2% year over year. Adjusted operating margin from continuing operations was 8.3%, lower than 12.4% in the year-ago period.
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,408 million, surpassing the Zacks Consensus Estimate of $1,386 million. However, revenues came down nearly 14% on a year-over-year basis. All major categories within the segment, except the front center airbags, witnessed a decline in sales. The largest driver of reduced sales was inflatable curtains and side airbags.
Sales in the Seatbelts and Associated Products segment totaled $711 million, down 19.2% from the prior-year quarter. The figure also missed the consensus mark of $775 million. Curtailed revenues from North America and Europe mainly led to the decline.
Financial Position
Autoliv had cash and cash equivalents of $969 million as of Dec 31, 2021, down 17.7% year over year. Long-term debt totaled $1,662 million, decreasing 21.2% from $2,110 million as of Dec 31, 2020. Net capital expenditure increased to $154 million from $112 million. At quarter-end, free cash flow was $164 million, spiraling down 54%. During the quarter under review, Autoliv raised the quarterly dividend to 64 cents per share from 62 cents in the previous quarter.
Road Ahead
Autoliv braces itself for a somewhat challenging year ahead. It expects raw material costs to rise in the current year with anticipation of operating margin to be impacted. However, customer recoveries may offset some raw material cost increases, mainly in the second half of the year. It will follow strict cost discipline in 2022, including executing capacity alignments, footprint optimization and strategic initiatives.
With a forecast of 9% growth in light vehicle production aided by a positive regional mix and product launches, ALV expects to grow organically by around 20% in 2022, generating an adjusted operating margin of 9.5% for full-year 2022.
Zacks Rank & Key Picks
Currently, Autoliv carries a Zacks Rank #4 (Sell). ALV’s shares have gained 6.7% over the past year against the industry’s 45.5% decline.
Some better-ranked players in the auto space are General Motors (GM - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 0.7% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 37.6% over a year.