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Adient (ADNT) Q4 Earnings & Sales Top Estimates, Increase Y/Y
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Adient (ADNT - Free Report) reported adjusted earnings per share of 53 cents in the fourth quarter of fiscal 2022, beating the Zacks Consensus Estimate of 51 cents. The bottom line reversed from the year-ago loss of 24 cents per share. The outperformance stemmed from higher-than-anticipated sales from the Americas and Asia segments and profitability in the Americas segment.
In the reported quarter, Adient generated net sales of $3,650 million, up 32% from $2,771 million recorded in the prior-year period and surpassed the Zacks Consensus Estimate of $3,549 million.
Segmental Performance
Adient currently operates through three reportable segments — the Americas, which includes North America and South America; Europe, the Middle East and Africa (EMEA), and Asia Pacific/China (Asia).
In the reported quarter, the Americas segment recorded revenues of $1,790 million, increasing 33% from the year-ago period and topping the consensus metric of $1,693 million. The segment posted adjusted EBITDA of $117 million, shooting up 800% from the prior-year period. The increase was driven by higher volume and mix resulting from modestly improved customer production schedules and business performance. The figure also topped the consensus metric of $81 million.
In the fiscal fourth quarter, the EMEA segment registered revenues of $1,101 million, increasing 10.5% year over year but lagging the consensus mark of $1,228 million. The segment recorded EBITDA of $34 million in the quarter under review. In the year-ago quarter, the segment did not report any EBITDA. Improved business performance, increased volume and mix, and favorable commodity recoveries drove the performance. The figure marginally topped the consensus metric of $33.02 million.
In the reported quarter, revenues in the Asia segment came in at $792 million, soaring 70.3% year over year and topping the consensus mark of $691 million. The segment’s adjusted EBITDA came down 18% to $100 million and missed the consensus mark of $109 million. Lower equity income, unfavorable foreign exchange and negative business performance led to the decline.
Financial Position
Adient had cash and cash equivalents of $947 million as of Sep 30, 2022, compared with $1,521 million on Sep 30, 2021. Long-term debt amounted to $2,564 million in the reported quarter, down from $3,512 million. Capital expenditure totaled $57 million in the fiscal fourth quarter of 2022 compared with $74 million in the prior-year quarter. Selling, general and administrative expenses rose to $159 million in the quarter from $104 million in the year-ago period.
Adient management has approved a $600M share repurchase program with no expiration.
Outlook
The company has provided its guidance for 2023. It envisions revenues of $14.7 billion. Adjusted EBITDA forecast is $850 million for the year. Expected equity income stands at $90 million. Capital expenditure is estimated at $300 million. Free cash flow is expected to be $200 million.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.4% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.4% upward over the past 30 days.
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Adient (ADNT) Q4 Earnings & Sales Top Estimates, Increase Y/Y
Adient (ADNT - Free Report) reported adjusted earnings per share of 53 cents in the fourth quarter of fiscal 2022, beating the Zacks Consensus Estimate of 51 cents. The bottom line reversed from the year-ago loss of 24 cents per share. The outperformance stemmed from higher-than-anticipated sales from the Americas and Asia segments and profitability in the Americas segment.
In the reported quarter, Adient generated net sales of $3,650 million, up 32% from $2,771 million recorded in the prior-year period and surpassed the Zacks Consensus Estimate of $3,549 million.
Segmental Performance
Adient currently operates through three reportable segments — the Americas, which includes North America and South America; Europe, the Middle East and Africa (EMEA), and Asia Pacific/China (Asia).
In the reported quarter, the Americas segment recorded revenues of $1,790 million, increasing 33% from the year-ago period and topping the consensus metric of $1,693 million. The segment posted adjusted EBITDA of $117 million, shooting up 800% from the prior-year period. The increase was driven by higher volume and mix resulting from modestly improved customer production schedules and business performance. The figure also topped the consensus metric of $81 million.
In the fiscal fourth quarter, the EMEA segment registered revenues of $1,101 million, increasing 10.5% year over year but lagging the consensus mark of $1,228 million. The segment recorded EBITDA of $34 million in the quarter under review. In the year-ago quarter, the segment did not report any EBITDA. Improved business performance, increased volume and mix, and favorable commodity recoveries drove the performance. The figure marginally topped the consensus metric of $33.02 million.
In the reported quarter, revenues in the Asia segment came in at $792 million, soaring 70.3% year over year and topping the consensus mark of $691 million. The segment’s adjusted EBITDA came down 18% to $100 million and missed the consensus mark of $109 million. Lower equity income, unfavorable foreign exchange and negative business performance led to the decline.
Financial Position
Adient had cash and cash equivalents of $947 million as of Sep 30, 2022, compared with $1,521 million on Sep 30, 2021. Long-term debt amounted to $2,564 million in the reported quarter, down from $3,512 million. Capital expenditure totaled $57 million in the fiscal fourth quarter of 2022 compared with $74 million in the prior-year quarter. Selling, general and administrative expenses rose to $159 million in the quarter from $104 million in the year-ago period.
Adient management has approved a $600M share repurchase program with no expiration.
Outlook
The company has provided its guidance for 2023. It envisions revenues of $14.7 billion. Adjusted EBITDA forecast is $850 million for the year. Expected equity income stands at $90 million. Capital expenditure is estimated at $300 million. Free cash flow is expected to be $200 million.
Zacks Rank & Key Picks
ADNT currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.4% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.4% upward over the past 30 days.