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Adient (ADNT) Q1 Earnings Miss Estimates, Guidance Revised
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Adient (ADNT - Free Report) delivered adjusted earnings per share (EPS) of 31 cents for the first quarter of fiscal 2024. Earnings fell from 34 cents recorded in the year-ago period and also missed the Zacks Consensus Estimate of 47 cents. In the reported quarter, the company generated net sales of $3.66 billion, which decreased 1% year over year and missed the Zacks Consensus Estimate of $3.72 billion.
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 $1.65 billion, which declined 4% from the year-ago period but beat the Zacks Consensus Estimate of $1.64 billion. The segment recorded an adjusted EBITDA of $80 million, up from $69 million recorded in the prior-year period and topped the Zacks Consensus Estimate of $57 million, driven by sales outperformance.
In the fiscal first quarter, the EMEA segment registered revenues of $1.27 billion, which increased 7.6% year over year and exceeded the Zacks Consensus Estimate of $1.25 billion. The segment recorded EBITDA of $45 million in the quarter under review, which was higher than $28 million generated in the year-ago period. It also outpaced the Zacks Consensus Estimate of $40.99 million on the back of improved business performance, forex benefits and increased net commodities.
In the quarter, revenues in the Asia segment came in at $770 million, down 6.2% year over year and missed the Zacks Consensus Estimate of $844. The segment’s adjusted EBITDA fell 17.4% year over year to $114 million due to the end of production of a few programs and the launch of others, and the timing of recoveries.
Financial Position
Adient had cash and cash equivalents of $990 million as of Dec 31, 2023 compared with $1.11 billion as of Sep 30, 2023.
Long-term debt amounted to $2,403 million in the reported quarter, up from $2,401 million as of Sep 30, 2023.
Capital expenditures totaled $55 million in the fiscal first quarter of 2024 compared with $61 million in the prior-year quarter.
During the quarter under review, Adient repurchased nearly three million shares for $100 million.
Revised Guidance 2024
Adient envisions fiscal 2024 revenues in the range of $15.40-$15.50 billion, down from the previous guidance of $15.60-$15.70 billion. Adjusted EBITDA is estimated to be $985 million, down from the prior guidance of $1.01 billion. Equity income and capex are projected between $70 million and $310 million, respectively, the same as the previous guidance. Free cash flow is estimated to be $300 million. Interest expenses and cash tax are estimated between $185 million and $105 million, respectively.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for NIO’s 2023 sales implies year-over-year growth of 10.4%. The EPS estimates for 2024 have improved 7 cents in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 16 cents and 29 cents, respectively, in the past 30 days.
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Adient (ADNT) Q1 Earnings Miss Estimates, Guidance Revised
Adient (ADNT - Free Report) delivered adjusted earnings per share (EPS) of 31 cents for the first quarter of fiscal 2024. Earnings fell from 34 cents recorded in the year-ago period and also missed the Zacks Consensus Estimate of 47 cents. In the reported quarter, the company generated net sales of $3.66 billion, which decreased 1% year over year and missed the Zacks Consensus Estimate of $3.72 billion.
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 $1.65 billion, which declined 4% from the year-ago period but beat the Zacks Consensus Estimate of $1.64 billion. The segment recorded an adjusted EBITDA of $80 million, up from $69 million recorded in the prior-year period and topped the Zacks Consensus Estimate of $57 million, driven by sales outperformance.
In the fiscal first quarter, the EMEA segment registered revenues of $1.27 billion, which increased 7.6% year over year and exceeded the Zacks Consensus Estimate of $1.25 billion. The segment recorded EBITDA of $45 million in the quarter under review, which was higher than $28 million generated in the year-ago period. It also outpaced the Zacks Consensus Estimate of $40.99 million on the back of improved business performance, forex benefits and increased net commodities.
In the quarter, revenues in the Asia segment came in at $770 million, down 6.2% year over year and missed the Zacks Consensus Estimate of $844. The segment’s adjusted EBITDA fell 17.4% year over year to $114 million due to the end of production of a few programs and the launch of others, and the timing of recoveries.
Financial Position
Adient had cash and cash equivalents of $990 million as of Dec 31, 2023 compared with $1.11 billion as of Sep 30, 2023.
Long-term debt amounted to $2,403 million in the reported quarter, up from $2,401 million as of Sep 30, 2023.
Capital expenditures totaled $55 million in the fiscal first quarter of 2024 compared with $61 million in the prior-year quarter.
During the quarter under review, Adient repurchased nearly three million shares for $100 million.
Revised Guidance 2024
Adient envisions fiscal 2024 revenues in the range of $15.40-$15.50 billion, down from the previous guidance of $15.60-$15.70 billion. Adjusted EBITDA is estimated to be $985 million, down from the prior guidance of $1.01 billion. Equity income and capex are projected between $70 million and $310 million, respectively, the same as the previous guidance. Free cash flow is estimated to be $300 million. Interest expenses and cash tax are estimated between $185 million and $105 million, respectively.
Zacks Rank & Key Picks
ADNT currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , NIO Inc. (NIO - Free Report) and Oshkosh Corporation (OSK - Free Report) . MOD sports a Zacks Rank #1 (Strong Buy), while NIO & OSK carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for NIO’s 2023 sales implies year-over-year growth of 10.4%. The EPS estimates for 2024 have improved 7 cents in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 16 cents and 29 cents, respectively, in the past 30 days.