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Why Is Adient (ADNT) Up 9.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Adient (ADNT - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Adient due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Adient Q4 Earnings Miss Estimates & Contract Y/Y
Adient delivered adjusted earnings per share of 51 cents for the fourth quarter of fiscal 2023. Earnings fell from 53 cents recorded in the year-ago period and also missed the Zacks Consensus Estimate of 52 cents. In the reported quarter, Adient generated net sales of $3,729 million, which increased 2.2% year over year but missed the Zacks Consensus Estimate of $3,760 million.
Segmental Performance
Adient currently operates through three reportable segments — the Americas, including North America and South America; Europe, which includes the Middle East and Africa (“EMEA”); and Asia Pacific/China (Asia).
In the reported quarter, the Americas segment recorded revenues of $1,835 million, an increase of 2.5% from the year-ago period, topping the Zacks Consensus Estimate of $1,776 million. The segment posted an adjusted EBITDA of $100 million, down from $117 million recorded in the prior-year period, but topped the Zacks Consensus Estimate of $93 million, driven by sales outperformance and improved volume and mix.
In the fiscal fourth quarter, the EMEA segment registered revenues of $1,174 million, which increased 6.6% year over year but fell short of the Zacks Consensus Estimate of $1,241 million. The segment recorded EBITDA of $48 million in the quarter under review, higher than $34 million generated in the year-ago period. It also outpaced the Zacks Consensus Estimate of $44.28 million on the back of improved business performance and forex benefits.
In the quarter, revenues in the Asia segment came in at $748 million, down 5.6% year over year, but topped the Zacks Consensus Estimate of $742. The segment’s adjusted EBITDA grew 13% to $113 million on improved business performance and high equity income.
Financial Position
Adient had cash and cash equivalents of $1,110 million as of Sep 30, 2023 compared with $947 million on Sep 30, 2022. Long-term debt amounted to $2,401 million in the reported quarter, down from $2,564 million as of Sep 30, 2022. Capital expenditures totaled $75 million in the fiscal fourth quarter of 2023 compared with $57 million in the prior-year quarter.
Outlook 2024
Adient envisions fiscal 2024 revenues in the range of $15.60-15.70 billion. Adjusted EBITDA is estimated to be $1,010 million. Equity income and capex are forecast to be $70 million and $310 million, respectively. Free cash flow is estimated to be $300 million. Interest expenses and cash tax are estimated to be $185 million and $105 million, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -28.27% due to these changes.
VGM Scores
At this time, Adient has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Adient has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Adient belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Allison Transmission (ALSN - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Allison Transmission reported revenues of $736 million in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.76 for the same period compares with $1.45 a year ago.
For the current quarter, Allison Transmission is expected to post earnings of $1.46 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Allison Transmission has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Adient (ADNT) Up 9.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Adient (ADNT - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Adient due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Adient Q4 Earnings Miss Estimates & Contract Y/Y
Adient delivered adjusted earnings per share of 51 cents for the fourth quarter of fiscal 2023. Earnings fell from 53 cents recorded in the year-ago period and also missed the Zacks Consensus Estimate of 52 cents. In the reported quarter, Adient generated net sales of $3,729 million, which increased 2.2% year over year but missed the Zacks Consensus Estimate of $3,760 million.
Segmental Performance
Adient currently operates through three reportable segments — the Americas, including North America and South America; Europe, which includes the Middle East and Africa (“EMEA”); and Asia Pacific/China (Asia).
In the reported quarter, the Americas segment recorded revenues of $1,835 million, an increase of 2.5% from the year-ago period, topping the Zacks Consensus Estimate of $1,776 million. The segment posted an adjusted EBITDA of $100 million, down from $117 million recorded in the prior-year period, but topped the Zacks Consensus Estimate of $93 million, driven by sales outperformance and improved volume and mix.
In the fiscal fourth quarter, the EMEA segment registered revenues of $1,174 million, which increased 6.6% year over year but fell short of the Zacks Consensus Estimate of $1,241 million. The segment recorded EBITDA of $48 million in the quarter under review, higher than $34 million generated in the year-ago period. It also outpaced the Zacks Consensus Estimate of $44.28 million on the back of improved business performance and forex benefits.
In the quarter, revenues in the Asia segment came in at $748 million, down 5.6% year over year, but topped the Zacks Consensus Estimate of $742. The segment’s adjusted EBITDA grew 13% to $113 million on improved business performance and high equity income.
Financial Position
Adient had cash and cash equivalents of $1,110 million as of Sep 30, 2023 compared with $947 million on Sep 30, 2022. Long-term debt amounted to $2,401 million in the reported quarter, down from $2,564 million as of Sep 30, 2022. Capital expenditures totaled $75 million in the fiscal fourth quarter of 2023 compared with $57 million in the prior-year quarter.
Outlook 2024
Adient envisions fiscal 2024 revenues in the range of $15.60-15.70 billion. Adjusted EBITDA is estimated to be $1,010 million. Equity income and capex are forecast to be $70 million and $310 million, respectively. Free cash flow is estimated to be $300 million. Interest expenses and cash tax are estimated to be $185 million and $105 million, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -28.27% due to these changes.
VGM Scores
At this time, Adient has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Adient has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Adient belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Allison Transmission (ALSN - Free Report) , has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Allison Transmission reported revenues of $736 million in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.76 for the same period compares with $1.45 a year ago.
For the current quarter, Allison Transmission is expected to post earnings of $1.46 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Allison Transmission has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.