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Autoliv Inc. (ALV - Free Report) reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. This was due to lower-than-expected revenues from the Airbags and Associated Products, Seatbelts and Associated Products, the Americas, Europe, Japan and the Rest of Asia segments. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million in the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.
Autoliv reported an adjusted operating income of $173 million, surging 67% year over year. Adjusted operating margin from continuing operations was 7.5%, higher than 5.6% in the year-ago period. It was driven by a recovery in light vehicle production, cost discipline and pricing initiatives.
Sales in the Airbags and Associated Products segment totaled $1,510 million, marginally missing the Zacks Consensus Estimate of $1,514 million. But, revenues soared 26% on a year-over-year basis. All major categories within the segment witnessed organic sales growth. The primary reason for the upside was a rise in sales of steering wheels and inflatable curtains, followed by passenger airbags and side airbags.
Sales in the Seatbelts and Associated Products segment totaled $792 million, up 22% from the prior-year quarter. Organic growth in China, followed by the Americas and Europe, was the contributing factor. The figure, however, missed the consensus mark of $841 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $794 million, which fell short of the consensus mark of $812 million. Sales in Europe totaled $552 million, lagging the Zacks Consensus Estimate of $628 million. Sales in China came in at $537 million, beating the consensus mark of $497 million. Sales in Japan and the Rest of Asia were $175 million and $243 million, missing the consensus mark of $220 million and $244 million, respectively.
Financial Position
Autoliv had cash and cash equivalents of $483 million as of Sep 30, 2022, down 46% year over year. Long-term debt totaled $1,037 million, decreasing from $1,687 million as of Sep 30, 2021. Net capital expenditure increased 47% to $164 million. At quarter-end, positive free cash flow was $68 million, down from $77 million in the year-ago period. During the quarter under review, Autoliv paid a quarterly dividend of 64 cents per share and repurchased 0.26 million shares at an average price of $78.04 per share.
2022 Guidance
The company forecasts full-year 2022 organic sales growth of around 15%, up from 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from the $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.
Autoliv, which belongs to the Zacks Auto-Tires-Trucks sector, competes with peers like Cummins (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Lithia Motors (LAD - Free Report) .
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 1.49%.
CarParts’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with the average surprise being 70%.
Lithia’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 7.73%.
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Autoliv (ALV) Q3 Earnings & Sales Lag, '22 Sales View Revised
Autoliv Inc. (ALV - Free Report) reported third-quarter 2022 adjusted earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.37. This was due to lower-than-expected revenues from the Airbags and Associated Products, Seatbelts and Associated Products, the Americas, Europe, Japan and the Rest of Asia segments. The bottom line, nevertheless, shot up 68% on a year-over-year basis. The company reported net sales of $2,302 million in the quarter, which missed the Zacks Consensus Estimate of $2,344 million. The top line, however, soared 25% year over year.
Autoliv reported an adjusted operating income of $173 million, surging 67% year over year. Adjusted operating margin from continuing operations was 7.5%, higher than 5.6% in the year-ago period. It was driven by a recovery in light vehicle production, cost discipline and pricing initiatives.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote
Segmental Performance
Sales in the Airbags and Associated Products segment totaled $1,510 million, marginally missing the Zacks Consensus Estimate of $1,514 million. But, revenues soared 26% on a year-over-year basis. All major categories within the segment witnessed organic sales growth. The primary reason for the upside was a rise in sales of steering wheels and inflatable curtains, followed by passenger airbags and side airbags.
Sales in the Seatbelts and Associated Products segment totaled $792 million, up 22% from the prior-year quarter. Organic growth in China, followed by the Americas and Europe, was the contributing factor. The figure, however, missed the consensus mark of $841 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $794 million, which fell short of the consensus mark of $812 million. Sales in Europe totaled $552 million, lagging the Zacks Consensus Estimate of $628 million. Sales in China came in at $537 million, beating the consensus mark of $497 million. Sales in Japan and the Rest of Asia were $175 million and $243 million, missing the consensus mark of $220 million and $244 million, respectively.
Financial Position
Autoliv had cash and cash equivalents of $483 million as of Sep 30, 2022, down 46% year over year. Long-term debt totaled $1,037 million, decreasing from $1,687 million as of Sep 30, 2021. Net capital expenditure increased 47% to $164 million. At quarter-end, positive free cash flow was $68 million, down from $77 million in the year-ago period. During the quarter under review, Autoliv paid a quarterly dividend of 64 cents per share and repurchased 0.26 million shares at an average price of $78.04 per share.
2022 Guidance
The company forecasts full-year 2022 organic sales growth of around 15%, up from 13-16% guided previously. Adjusted operating margin is now anticipated within the higher end of 6-7%. Operating cash flow expectations have been brought down to the band of $700-$750 million from the $750-$850 million forecast earlier. The projection for capex, net, of sales, remains unchanged at around 5.5%.
Autoliv, which belongs to the Zacks Auto-Tires-Trucks sector, competes with peers like Cummins (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Lithia Motors (LAD - Free Report) .
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 1.49%.
CarParts’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with the average surprise being 70%.
Lithia’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, with the average surprise being 7.73%.