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 2023 adjusted earnings of $3.74 per share, surpassing the Zacks Consensus Estimate of $3.25 and rising 105% year over year. The company reported net sales of $2,751 million in the quarter, which topped the Zacks Consensus Estimate of $2,746 million and soared 18% year over year.
Organic sales rose 16% year over year and breezed past our estimate of 10.6% due to product launches and higher prices. Autoliv reported an adjusted operating income of $334 million, increasing 43% year over year. Adjusted operating margin was 12.1%, higher than 10% in the year-ago period due to higher gross profit.
Sales in the Airbags and Associated Products segment totaled $1,864 million, beating our projection of $1,789.7 million. Revenues rose 18% on a year-over-year basis. All major categories within the segment witnessed organic sales growth, the primary reason being a rise in sales of steering wheels, followed by inflatable curtains, side airbags and passenger airbags.
Sales in the Seatbelts and Associated Products segment totaled $887 million, up 18% from the prior-year quarter but missing our projection of $905.8 million. Organic growth in the Americas, followed by Asia excluding China, China and Europe, contributed to the year-over-year increase.
Region-wise, overall sales in the Americas during the quarter under review totaled $861 million, which surpassed our estimate of $828.6 million and increased 16% year over year.
Sales in Europe totaled $755 million, topping our forecast of $715 million and increasing 23% year over year.
Sales in China came in at $617 million, missing our projection of $650.7 million but rising 15% year over year.
Sales in the Rest of Asia totaled $519 million, up 18% year over year and above our projection of $500.4 million.
Financial Position
Autoliv had cash and cash equivalents of $498 million as of Dec 31, 2023. Long-term debt totaled $1.32 billion. Net capital expenditure fell to $150 million compared with $165 million during the corresponding period of 2022. At quarter-end, free cash flow was $297 million, flat compared to the year-ago period. During the quarter under review, Autoliv increased its dividend to 68 cents per share, representing an uptick of 3% from the previous quarter. It repurchased 1.51 million shares at an average price of $99.21 per share.
2024 Guidance
The company forecasts full-year 2024 organic sales growth of around 5%. The adjusted operating margin is anticipated to be approximately 10.5%. Operating cash flow is expected to be $1.2 billion in 2024.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved 30 cents in the past seven days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved by a penny and 30 cents, respectively, in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Autoliv (ALV) Q4 Earnings Surpass Estimates, Dividend Hiked
Autoliv Inc. (ALV - Free Report) reported fourth-quarter 2023 adjusted earnings of $3.74 per share, surpassing the Zacks Consensus Estimate of $3.25 and rising 105% year over year. The company reported net sales of $2,751 million in the quarter, which topped the Zacks Consensus Estimate of $2,746 million and soared 18% year over year.
Organic sales rose 16% year over year and breezed past our estimate of 10.6% due to product launches and higher prices. Autoliv reported an adjusted operating income of $334 million, increasing 43% year over year. Adjusted operating margin was 12.1%, higher than 10% in the year-ago period due to higher gross profit.
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 $1,864 million, beating our projection of $1,789.7 million. Revenues rose 18% on a year-over-year basis. All major categories within the segment witnessed organic sales growth, the primary reason being a rise in sales of steering wheels, followed by inflatable curtains, side airbags and passenger airbags.
Sales in the Seatbelts and Associated Products segment totaled $887 million, up 18% from the prior-year quarter but missing our projection of $905.8 million. Organic growth in the Americas, followed by Asia excluding China, China and Europe, contributed to the year-over-year increase.
Region-wise, overall sales in the Americas during the quarter under review totaled $861 million, which surpassed our estimate of $828.6 million and increased 16% year over year.
Sales in Europe totaled $755 million, topping our forecast of $715 million and increasing 23% year over year.
Sales in China came in at $617 million, missing our projection of $650.7 million but rising 15% year over year.
Sales in the Rest of Asia totaled $519 million, up 18% year over year and above our projection of $500.4 million.
Financial Position
Autoliv had cash and cash equivalents of $498 million as of Dec 31, 2023. Long-term debt totaled $1.32 billion. Net capital expenditure fell to $150 million compared with $165 million during the corresponding period of 2022. At quarter-end, free cash flow was $297 million, flat compared to the year-ago period. During the quarter under review, Autoliv increased its dividend to 68 cents per share, representing an uptick of 3% from the previous quarter. It repurchased 1.51 million shares at an average price of $99.21 per share.
2024 Guidance
The company forecasts full-year 2024 organic sales growth of around 5%. The adjusted operating margin is anticipated to be approximately 10.5%. Operating cash flow is expected to be $1.2 billion in 2024.
Zacks Rank & Key Picks
ALV currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , BYD Company Limited (BYDDY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) . HMC and BYDDY each sports a Zacks Rank #1 (Strong Buy) and MBGAF carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved 30 cents in the past seven days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved by a penny and 30 cents, respectively, in the past 60 days.