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Delphi Technologies (DLPH) Beats on Q1 Earnings & Revenues

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Delphi Technologies reported solid first-quarter 2020 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of 22 cents outpaced the consensus mark by more than 100% but decreased 67% year over year.

Total revenues of $945 million surpassed the consensus estimate by 9.5% but decreased 18% year over year on a reported basis and 16% on an adjusted basis (adjustments were made for currency exchange). The downside was mainly due to lower global production and the closure of customer production sites related to coronavirus outbreak and the downward trend in passenger car diesel fuel injection systems in Europe, partially offset by solid growth in advanced gasoline direct injection fuel systems.

So far this year, shares of Delphi Technologies have decreased 10.8% compared with 3.8% decline of the industry it belongs to.

 

Revenues in Detail

Segment-wise, Fuel Injection Systems revenues of $393 million declined 13% year over year.Powertrain Systems revenues of $261 million decreased 20% year over year. Electrification & Electronics revenues of $178 million declined 27% year over year. Delphi Technologies Aftermarket revenues of $174 million declined 10% year over year.

Region-wise, adjusted revenues declined 20% in Europe, 23% in North America and 15% in South America, partially offset by 6% growth in Asia Pacific, including an increase of 12% in China.

Operating Results

Adjusted operating income of $40 million decreased 54% from the prior-year quarter. Adjusted operating income margin of 4.2% declined 340 basis points from the prior-year quarter.

Delphi Technologies PLC Price, Consensus and EPS Surprise

 

Delphi Technologies PLC Price, Consensus and EPS Surprise

Delphi Technologies PLC price-consensus-eps-surprise-chart | Delphi Technologies PLC Quote

Balance Sheet and Cash Flow

Delphi Technologies exited first-quarter 2020 with cash and cash equivalents of $611 million compared with $191 million at the end of the prior quarter. Long-term debt was $1.94 billion compared with $1.46 billion at the end of the prior quarter.

The company generated $31 million of cash from operating activities in the reported quarter. Capital expenditure totaled $85 million.

Currently, Delphi Technologies carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

S&P Global Inc. (SPGI - Free Report) first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3.

IQVIA Holdings Inc. (IQV - Free Report) first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.

Insperity, Inc. (NSP - Free Report) first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #3.

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