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Adient's (ADNT) Q3 Earnings Miss Estimates, Revenues Up

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Adient's (ADNT) Q3 Earnings Miss Estimates, Revenues Up

For fiscal 2018, Adient (ADNT) anticipates revenues of around $17.5 billion, up from the prior guidance of $17-$17.2 billion.

Adient plc ADNT reported third-quarter fiscal 2018 earnings per share of $1.45, lagging the Zacks Consensus Estimate of $1.56. The bottom-line figure in the year-ago quarter was $2.49 per share.

During the quarter under review, the company reported net sales of $4.5 billion, up 12% from that of third-quarter fiscal 2017. Also, the top line beat the Zacks Consensus Estimate of $4.3 billion. During the reported quarter, gains generated from Futuris acquisition, China JV consolidation and foreign exchange positive aided revenue growth.

During the quarter under review, net income attributed to Adient was $54 million compared with the net income of $201 million in third-quarter fiscal 2017.

Adient PLC Price, Consensus and EPS Surprise

Adient PLC Price, Consensus and EPS Surprise | Adient PLC Quote

Quarter in Details

During the reported quarter, the Seating segment of the company reported net sales of $4 billion, up from $3.6 billion in third-quarter fiscal 2017.

Adjusted EBITDA of this segment amounted to $344 million, down from $413 million in third-quarter fiscal 2017.

The Seat Structures & Mechanisms (“SS&M”) segment reported revenues of $783 million, up from $713 million in the prior-year quarter. Adjusted EBITDA of this segment amounted to negative $26 million compared with a negative $39 million in third-quarter fiscal 2017.

Financials

Adient had cash and cash equivalents of $378 million as of Jun 30, 2018, compared with $709 million as of Sep 30, 2017.

As of the same date, net debt amounted to $3.1 billion, up from $2.8 billion as of Sep 30, 2017.

Fiscal 2018 Outlook

For fiscal 2018, the company anticipates revenues of around $17.5 billion, up from the prior guidance of $17-$17.2 billion. Adjusted EBITDA is likely to be around $1.25 billion, down from the earlier guidance of $1.40-$1.45 billion.

Zacks Rank & Key Picks

Currently, Adient has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the auto space are Oshkosh Corporation OSK, AB Volvo VLVLY and Fox Factory Holding Corp. FOXF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 7.3%.

AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.3%.

Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 30.2% over the past year.

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