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Adjusted earnings of $1.15 per share beat the Zacks Consensus Estimate by 12.7% but declined 14.2% year over year. Revenues of $3.6 billion surpassed the consensus mark by 1.4% but declined 1% year over year.
Shares of Aptiv have gained 23.1% in the past year, against 2.2% decline of the industry it belongs to.
Quarterly Numbers in Detail
Revenues in the Signal and Power Solutions segment totaled $2.57 billion, down 1% on a year-over-year basis and contributed 71% to total revenues. Advanced Safety and User Experience revenues of $1.03 billion were down 1% year over year and contributed 29% to total revenues.
Adjusted operating income of $388 million fell 9.8% year over year. Adjusted operating income margin declined to 10.8% from 11.5% in the prior-year quarter due to unfavorable impacts of the GM labor strike.
Aptiv exited the quarter with cash and cash equivalents balance of $412 million compared with $341 million at the end of the prior quarter. Long-term debt was $4 billion, flat with the prior quarter.
Total available liquidity at the end of the quarter was $2.4 billion compared with $2.3 billion at the end of the prior quarter. Net cash provided by operating activities was $703 million and capital expenditures were $162 million in the quarter.
During the fourth quarter, Aptiv returned $86 million to shareholders through share repurchases and dividends. The company repurchased shares for roughly $30 million and paid out $56 million in dividend payments.
Q1 Guidance
The company expects adjusted earnings in the range of 86 cents to 94 cents per share, lower than the Zacks Consensus estimate of $1.24.
Net sales are anticipated between $3.47 billion and $3.57 billion, lower than the Zacks Consensus Estimate of $3.76 billion.
Adjusted operating income is expected in the range of $303-$308 million. Adjusted operating income margin is anticipated between 8.7% and 9.2%. The company expects effective tax rate between 12% and 13% for the quarter.
2020 Guidance
Adjusted earnings are expected in the range of $4.75-$5.05 per share, the midpoint of which is below the Zacks Consensus estimate of $5.4.
Net sales are anticipated between $14.5 billion and $14.9 billion, below the Zacks Consensus Estimate of $15.1 billion.
Adjusted operating income is expected in the range of $1,670-$1,770 million. Adjusted operating income margin is anticipated between 11.5% and 11.9%. The company expects capital expenditures of $750 million and adjusted effective tax rate between 12% and 13% for the year.
Long-term earnings (three to five years) growth rate for Waste Management, S&P Global and Fidelity National Information Services is estimated at 8.2%, 10% and 8.9%, respectively.
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Aptiv (APTV) Beats Earnings and Revenue Estimates in Q4
Aptiv PLC (APTV - Free Report) reported better-than-expected fourth-quarter 2019 results.
Adjusted earnings of $1.15 per share beat the Zacks Consensus Estimate by 12.7% but declined 14.2% year over year. Revenues of $3.6 billion surpassed the consensus mark by 1.4% but declined 1% year over year.
Shares of Aptiv have gained 23.1% in the past year, against 2.2% decline of the industry it belongs to.
Quarterly Numbers in Detail
Revenues in the Signal and Power Solutions segment totaled $2.57 billion, down 1% on a year-over-year basis and contributed 71% to total revenues. Advanced Safety and User Experience revenues of $1.03 billion were down 1% year over year and contributed 29% to total revenues.
Adjusted operating income of $388 million fell 9.8% year over year. Adjusted operating income margin declined to 10.8% from 11.5% in the prior-year quarter due to unfavorable impacts of the GM labor strike.
Aptiv exited the quarter with cash and cash equivalents balance of $412 million compared with $341 million at the end of the prior quarter. Long-term debt was $4 billion, flat with the prior quarter.
Total available liquidity at the end of the quarter was $2.4 billion compared with $2.3 billion at the end of the prior quarter. Net cash provided by operating activities was $703 million and capital expenditures were $162 million in the quarter.
During the fourth quarter, Aptiv returned $86 million to shareholders through share repurchases and dividends. The company repurchased shares for roughly $30 million and paid out $56 million in dividend payments.
Q1 Guidance
The company expects adjusted earnings in the range of 86 cents to 94 cents per share, lower than the Zacks Consensus estimate of $1.24.
Net sales are anticipated between $3.47 billion and $3.57 billion, lower than the Zacks Consensus Estimate of $3.76 billion.
Adjusted operating income is expected in the range of $303-$308 million. Adjusted operating income margin is anticipated between 8.7% and 9.2%. The company expects effective tax rate between 12% and 13% for the quarter.
2020 Guidance
Adjusted earnings are expected in the range of $4.75-$5.05 per share, the midpoint of which is below the Zacks Consensus estimate of $5.4.
Net sales are anticipated between $14.5 billion and $14.9 billion, below the Zacks Consensus Estimate of $15.1 billion.
Adjusted operating income is expected in the range of $1,670-$1,770 million. Adjusted operating income margin is anticipated between 11.5% and 11.9%. The company expects capital expenditures of $750 million and adjusted effective tax rate between 12% and 13% for the year.
Zacks Rank & Stocks to Consider
Currently, Aptiv carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Waste Management (WM - Free Report) , S&P Global (SPGI - Free Report) and Fidelity National Information Services (FIS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for Waste Management, S&P Global and Fidelity National Information Services is estimated at 8.2%, 10% and 8.9%, respectively.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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