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Delphi Automotive (DLPH) Q1 Earnings: Another Beat in Store?
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Delphi Automotive PLC is set to report first-quarter 2017 results on May 3. In the last quarter, the company posted a positive earnings surprise of 14.38%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Delphi Automotive is likely to beat earnings this season because it has the right combination of the two key components.
Zacks ESP:Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently +1.37%. This is because the Most Accurate estimate stands at $1.48 per share while the Zacks Consensus Estimate is pegged at $1.46. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Delphi Automotive currently carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Ranks #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings. Conversely, we caution against stocks with Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Delphi Automotive’s Zacks Rank #2 and positive ESP make us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Delphi Automotive is one of the largest vehicle parts manufacturers in the world. The company’s innovative products have helped it to secure all the 25 leading global automobile manufacturers as customers.
Delphi Automotive regularly undertakes acquisitions and alliances to enhance technological capability, increase operating scale, augment client base and expand geographically. The HellermannTyton Group acquisition has been boosting the company’s earnings. The transaction boosted Delphi Automotive’s earnings in 2016 and is expected to continue to do so.
For 2017, Delphi Automotive revealed its revenue guidance of $16.5–$16.9 billion, compared with the $16.7 billion generated in 2016. Adjusted earnings per share are expected in the range of $6.40–$6.70, higher than the $6.28 per share in 2016. Adjusted operating income is anticipated in the range of $2.19–$2.29 billion (13.3–13.5% of sales) in 2017, compared with $2.22 billion (13.3% of sales) in 2016. Operating cash flow is expected to increase to $2.1 billion from $1.94 billion in 2016. This raises hopes for good results in the first quarter.
Price Performance
Delphi Automotive outperformed the Zacks categorized Automotive-Original Equipment industry over the last three months due to an upbeat guidance for 2017. The company’s shares have gained 9.4% over the period, compared with a 3.6% rise recorded by the industry.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
CF Industries Holdings, Inc. (CF - Free Report) has an Earnings ESP of +55.56% and a Zacks Rank #3. The company is expected to report first-quarter 2017 results on May 3.
Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is expected to report first-quarter 2017 financial numbers on May 3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
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Delphi Automotive (DLPH) Q1 Earnings: Another Beat in Store?
Delphi Automotive PLC is set to report first-quarter 2017 results on May 3. In the last quarter, the company posted a positive earnings surprise of 14.38%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Delphi Automotive is likely to beat earnings this season because it has the right combination of the two key components.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently +1.37%. This is because the Most Accurate estimate stands at $1.48 per share while the Zacks Consensus Estimate is pegged at $1.46. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Delphi Automotive currently carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Ranks #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings. Conversely, we caution against stocks with Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Delphi Automotive’s Zacks Rank #2 and positive ESP make us reasonably confident of an earnings beat.
Delphi Automotive PLC Price and EPS Surprise
Delphi Automotive PLC Price and EPS Surprise | Delphi Automotive PLC Quote
What is Driving the Better-than-Expected Earnings?
Delphi Automotive is one of the largest vehicle parts manufacturers in the world. The company’s innovative products have helped it to secure all the 25 leading global automobile manufacturers as customers.
Delphi Automotive regularly undertakes acquisitions and alliances to enhance technological capability, increase operating scale, augment client base and expand geographically. The HellermannTyton Group acquisition has been boosting the company’s earnings. The transaction boosted Delphi Automotive’s earnings in 2016 and is expected to continue to do so.
For 2017, Delphi Automotive revealed its revenue guidance of $16.5–$16.9 billion, compared with the $16.7 billion generated in 2016. Adjusted earnings per share are expected in the range of $6.40–$6.70, higher than the $6.28 per share in 2016. Adjusted operating income is anticipated in the range of $2.19–$2.29 billion (13.3–13.5% of sales) in 2017, compared with $2.22 billion (13.3% of sales) in 2016. Operating cash flow is expected to increase to $2.1 billion from $1.94 billion in 2016. This raises hopes for good results in the first quarter.
Price Performance
Delphi Automotive outperformed the Zacks categorized Automotive-Original Equipment industry over the last three months due to an upbeat guidance for 2017. The company’s shares have gained 9.4% over the period, compared with a 3.6% rise recorded by the industry.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Ferrari N.V. (RACE - Free Report) has an Earnings ESP of +5.66% and a Zacks Rank #3. The company’s first-quarter 2017 financial results are expected to release on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries Holdings, Inc. (CF - Free Report) has an Earnings ESP of +55.56% and a Zacks Rank #3. The company is expected to report first-quarter 2017 results on May 3.
Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is expected to report first-quarter 2017 financial numbers on May 3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>