We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Adient (ADNT - Free Report) reported adjusted earnings per share of 98 cents for the third quarter of fiscal 2023. Earnings jumped from 8 cents recorded in the year-ago period as well as beat the Zacks Consensus Estimate of 39 cents. The outperformance largely stemmed from higher-than-anticipated revenues from the Americas segment. In the reported quarter, Adient generated net sales of $4,055 million, which increased 16% year over year and surpassed the Zacks Consensus Estimate of $3,806 million.
Adient currently operates through three reportable segments — the Americas, including 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 $1,900 million, an increase of 13.5% from the year-ago period, topping our projection of $1,613.2 million on improved volume and mix. The segment posted an adjusted EBITDA of $95 million, up from $70 million recorded in the prior-year period and slightly topping our estimate of $94.1 million, driven by the sales outperformance and increased equity income.
In the fiscal third quarter, the EMEA segment registered revenues of $1,438 million, which increased 18.3% year over year but fell short of our forecast of $1,467.5 million on lower-than-expected volumes. The segment recorded EBITDA of $103 million in the quarter under review, higher than the $31 million generated in the year-ago period and also outpaced our expectation of $81 million on the back of a non-recurring insurance recovery as well as forex benefits.
In the reported quarter, revenues in the Asia segment came in at $742 million, up 18.3% year over year and topping our estimate of $690.7 million on improved volume and mix. The segment’s adjusted EBITDA grew 56.25% to $100 million on improved sales and high equity income.
Financial Position
Adient had cash and cash equivalents of $908 million as of Jun 30, 2023 compared with $947 million on Sep 30, 2022. Long-term debt amounted to $2,532 million in the reported quarter, down from $2,564 million as of Sep 30, 2022. Capital expenditures totaled $60 million in the fiscal third quarter of 2023 compared with $53 million in the prior-year quarter.
Outlook
Adient updated its fiscal 2023 forecast. It envisions revenues of $15.4 billion, up from the prior guidance of $15 billion. Adjusted EBITDA is estimated to be $920 million, up from the previous projection of $850 million. Expected equity income and capex are forecast to be $80 million and $300 million, respectively. FCF is now estimated to be $275 million, up from the previous estimate of $215 million. Interest expenses and cash tax are now estimated to be $180 million and $95 million, respectively.
Peer Releases
Autoliv Inc. (ALV - Free Report) reported second-quarter 2023 adjusted earnings of $1.93 per share, beating the Zacks Consensus Estimate of $1.45 and rocketing 115% year over year. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. The company reported net sales of $2,635 million in the quarter, which topped the Zacks Consensus Estimate of $2,508 million and soared 27% year over year.
Autoliv had cash and cash equivalents of $475 million as of Jun 30, 2023. Long-term debt totaled $1,290 million. Net capital expenditure jumped to $124 million, compared with $139 million during the corresponding period of 2022. At quarter-end, FCF was $255 million against a negative FCF of $190 million in the year-ago period.
Allison Transmission Holdings (ALSN - Free Report) delivered second-quarter 2023 earnings of $1.92 per share, which rose 52% year over year and topped the Zacks Consensus Estimate of $1.61 on higher-than-expected sales from the North America On-Highway segment. Quarterly revenues of $783 million grew 18% from the year-ago period and beat the Zacks Consensus Estimate of $743 million.
Allison had cash and cash equivalents of $351 million on Jun 30, 2023, up from $232 million as of Dec 31, 2022. Long-term debt was $2,499 million compared with $2,501 million as of Dec 31, 2022. Net cash provided by operating activities increased to $141 million from $64 million in the same period in 2022. Adjusted FCF in the reported quarter was $122 million, an increase from $34 million a year ago.
BorgWarner (BWA - Free Report) reported adjusted earnings of $1.35 per share for second-quarter 2023, up from $1.05 recorded in the prior-year quarter. The bottom line also outpaced the Zacks Consensus Estimate of $1.14 per share. The automotive equipment supplier reported net sales of $4,520 million, which surpassed the Zacks Consensus Estimate of $4,395 million. The top line also increased by 20% year over year.
BorgWarner had $848 million in cash/cash equivalents/restricted cash at the quarter-end compared with $1,338 million as of Dec 31, 2022. Long-term debt was $4,191 million, up from $4,166 million recorded on Dec 31, 2022. Net cash provided in operating activities was $280 million in the quarter under review. Capital expenditures and FCF totaled $242 million and $38 million, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Adient (ADNT) Q3 Earnings & Sales Beat, Guidance Lifted
Adient (ADNT - Free Report) reported adjusted earnings per share of 98 cents for the third quarter of fiscal 2023. Earnings jumped from 8 cents recorded in the year-ago period as well as beat the Zacks Consensus Estimate of 39 cents. The outperformance largely stemmed from higher-than-anticipated revenues from the Americas segment. In the reported quarter, Adient generated net sales of $4,055 million, which increased 16% year over year and surpassed the Zacks Consensus Estimate of $3,806 million.
Adient currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adient Price, Consensus and EPS Surprise
Adient price-consensus-eps-surprise-chart | Adient Quote
Segmental Performance
Adient currently operates through three reportable segments — the Americas, including 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 $1,900 million, an increase of 13.5% from the year-ago period, topping our projection of $1,613.2 million on improved volume and mix. The segment posted an adjusted EBITDA of $95 million, up from $70 million recorded in the prior-year period and slightly topping our estimate of $94.1 million, driven by the sales outperformance and increased equity income.
In the fiscal third quarter, the EMEA segment registered revenues of $1,438 million, which increased 18.3% year over year but fell short of our forecast of $1,467.5 million on lower-than-expected volumes. The segment recorded EBITDA of $103 million in the quarter under review, higher than the $31 million generated in the year-ago period and also outpaced our expectation of $81 million on the back of a non-recurring insurance recovery as well as forex benefits.
In the reported quarter, revenues in the Asia segment came in at $742 million, up 18.3% year over year and topping our estimate of $690.7 million on improved volume and mix. The segment’s adjusted EBITDA grew 56.25% to $100 million on improved sales and high equity income.
Financial Position
Adient had cash and cash equivalents of $908 million as of Jun 30, 2023 compared with $947 million on Sep 30, 2022. Long-term debt amounted to $2,532 million in the reported quarter, down from $2,564 million as of Sep 30, 2022. Capital expenditures totaled $60 million in the fiscal third quarter of 2023 compared with $53 million in the prior-year quarter.
Outlook
Adient updated its fiscal 2023 forecast. It envisions revenues of $15.4 billion, up from the prior guidance of $15 billion. Adjusted EBITDA is estimated to be $920 million, up from the previous projection of $850 million. Expected equity income and capex are forecast to be $80 million and $300 million, respectively. FCF is now estimated to be $275 million, up from the previous estimate of $215 million. Interest expenses and cash tax are now estimated to be $180 million and $95 million, respectively.
Peer Releases
Autoliv Inc. (ALV - Free Report) reported second-quarter 2023 adjusted earnings of $1.93 per share, beating the Zacks Consensus Estimate of $1.45 and rocketing 115% year over year. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. The company reported net sales of $2,635 million in the quarter, which topped the Zacks Consensus Estimate of $2,508 million and soared 27% year over year.
Autoliv had cash and cash equivalents of $475 million as of Jun 30, 2023. Long-term debt totaled $1,290 million. Net capital expenditure jumped to $124 million, compared with $139 million during the corresponding period of 2022. At quarter-end, FCF was $255 million against a negative FCF of $190 million in the year-ago period.
Allison Transmission Holdings (ALSN - Free Report) delivered second-quarter 2023 earnings of $1.92 per share, which rose 52% year over year and topped the Zacks Consensus Estimate of $1.61 on higher-than-expected sales from the North America On-Highway segment. Quarterly revenues of $783 million grew 18% from the year-ago period and beat the Zacks Consensus Estimate of $743 million.
Allison had cash and cash equivalents of $351 million on Jun 30, 2023, up from $232 million as of Dec 31, 2022. Long-term debt was $2,499 million compared with $2,501 million as of Dec 31, 2022. Net cash provided by operating activities increased to $141 million from $64 million in the same period in 2022. Adjusted FCF in the reported quarter was $122 million, an increase from $34 million a year ago.
BorgWarner (BWA - Free Report) reported adjusted earnings of $1.35 per share for second-quarter 2023, up from $1.05 recorded in the prior-year quarter. The bottom line also outpaced the Zacks Consensus Estimate of $1.14 per share. The automotive equipment supplier reported net sales of $4,520 million, which surpassed the Zacks Consensus Estimate of $4,395 million. The top line also increased by 20% year over year.
BorgWarner had $848 million in cash/cash equivalents/restricted cash at the quarter-end compared with $1,338 million as of Dec 31, 2022. Long-term debt was $4,191 million, up from $4,166 million recorded on Dec 31, 2022. Net cash provided in operating activities was $280 million in the quarter under review. Capital expenditures and FCF totaled $242 million and $38 million, respectively.