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Adjusted earnings of 68 cents per share beat the Zacks Consensus Estimate by more than 100%. However, the reported figure plunged 35.2% year over year and came in below the company’s guidance of 86-94 cents per share. Revenues of $3.23 billion surpassed the consensus mark by 11.7% but declined 9.8% year over year. The top line came in below management’s guided range of $3.47-$3.57 billion.
Aptiv’s performance in the quarter was thwarted by global vehicle-production decline, work stoppages and supply-chain disruptions due to the coronavirus crisis.
In response to the pandemic, the company has tried to reinforce its cash position by drawing down all remaining amounts, $1.4 billion, on its Revolving Credit, suspending the annual dividend of around $225 million and halting further share repurchases. As its customer plants are closed down and vehicle production schedules changed, Aptiv has ramped down several production facilities as a cost control and working capital-management measure.
The company has withdrawn its second quarter and full-year 2020 financial guidance. So far this year, shares of Aptiv have depreciated 32.4% compared with the 9.1% decline of the industry it belongs to.
Quarterly Numbers in Detail
Revenues in the Signal and Power Solutions segment totaled $2.33 billion, down 9% on a year-over-year basis and contributed 72% to total revenues. Advanced Safety and User Experience revenues of $902 million were down 12% year over year and contributed 28% to total revenues.
Adjusted operating income of $231 million plunged 33% year over year. Adjusted operating income margin declined to 7.2% from 9.7% in the prior-year quarter.
Aptiv exited the quarter with cash and cash equivalents balance of $2.1 billion compared with the prior quarter’s $412 million. Long-term debt was $6 billion compared with the $4 billion witnessed in the previous quarter.
Total available liquidity at the end of the first quarter was $2.2 billion compared with the $2.4 billion recorded at the end of the prior quarter. Net cash provided by operating activities was $161 million and capital expenditures were $205 million in the March-end quarter. The company repurchased shares for roughly $57 million and paid out $56 million in dividends.
Currently, Aptiv carries a Zacks Rank 5 (Strong Buy).
The Interpublic Group (IPG - Free Report) reported first-quarter 2020 adjusted earnings of 11 cents per share, which beat the consensus mark by 22.2% but remained flat year over year.
Equifax (EFX - Free Report) delivered first-quarter 2020 adjusted earnings of $1.40 per share, which outpaced the consensus mark by 8.5% and improved 16% on a year-over-year basis.
ManpowerGroup (MAN - Free Report) recorded first-quarter 2020 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate by 2.7% and slumped 48.9% year over year.
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Aptiv (APTV) Q1 Earnings Top Estimates Amid Coronavirus Crisis
Aptiv PLC (APTV - Free Report) reported better-than-expected first-quarter 2020 results.
Adjusted earnings of 68 cents per share beat the Zacks Consensus Estimate by more than 100%. However, the reported figure plunged 35.2% year over year and came in below the company’s guidance of 86-94 cents per share. Revenues of $3.23 billion surpassed the consensus mark by 11.7% but declined 9.8% year over year. The top line came in below management’s guided range of $3.47-$3.57 billion.
Aptiv’s performance in the quarter was thwarted by global vehicle-production decline, work stoppages and supply-chain disruptions due to the coronavirus crisis.
In response to the pandemic, the company has tried to reinforce its cash position by drawing down all remaining amounts, $1.4 billion, on its Revolving Credit, suspending the annual dividend of around $225 million and halting further share repurchases. As its customer plants are closed down and vehicle production schedules changed, Aptiv has ramped down several production facilities as a cost control and working capital-management measure.
The company has withdrawn its second quarter and full-year 2020 financial guidance. So far this year, shares of Aptiv have depreciated 32.4% compared with the 9.1% decline of the industry it belongs to.
Quarterly Numbers in Detail
Revenues in the Signal and Power Solutions segment totaled $2.33 billion, down 9% on a year-over-year basis and contributed 72% to total revenues. Advanced Safety and User Experience revenues of $902 million were down 12% year over year and contributed 28% to total revenues.
Adjusted operating income of $231 million plunged 33% year over year. Adjusted operating income margin declined to 7.2% from 9.7% in the prior-year quarter.
Aptiv exited the quarter with cash and cash equivalents balance of $2.1 billion compared with the prior quarter’s $412 million. Long-term debt was $6 billion compared with the $4 billion witnessed in the previous quarter.
Total available liquidity at the end of the first quarter was $2.2 billion compared with the $2.4 billion recorded at the end of the prior quarter. Net cash provided by operating activities was $161 million and capital expenditures were $205 million in the March-end quarter. The company repurchased shares for roughly $57 million and paid out $56 million in dividends.
Currently, Aptiv carries a Zacks Rank 5 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
The Interpublic Group (IPG - Free Report) reported first-quarter 2020 adjusted earnings of 11 cents per share, which beat the consensus mark by 22.2% but remained flat year over year.
Equifax (EFX - Free Report) delivered first-quarter 2020 adjusted earnings of $1.40 per share, which outpaced the consensus mark by 8.5% and improved 16% on a year-over-year basis.
ManpowerGroup (MAN - Free Report) recorded first-quarter 2020 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate by 2.7% and slumped 48.9% year over year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
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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