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Adient's (ADNT) Q4 Earnings Beat Estimates, Revenues Up

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Adient's (ADNT) Q4 Earnings Beat Estimates, Revenues Up

The acquisition of Futuris and increase in volume aid Adient's (ADNT) revenue growth.

Adient plc ADNT reported fourth-quarter fiscal 2018 adjusted earnings per share of $1.30, beating the Zacks Consensus Estimate of $1.26. The bottom-line figure in the year-ago quarter was $2.32 per share. In fiscal 2018, the company reported adjusted earnings per share of $5.62.

During the quarter under review, Adient reported net sales of $4.15 billion, up 4% from fourth-quarter fiscal 2017. Further, the top line beat the Zacks Consensus Estimate of $4.12 billion. During the reported quarter, gains generated from the Futuris acquisition and increased volume aided revenue growth. In fiscal 2018, the company reported revenues of $17.4 billion, up from the fiscal 2017 figure of $16.2 billion.

During the quarter under review, net loss attributed to Adient was $1.36 billion against the net income of $344 million in fourth-quarter fiscal 2017.

Adient PLC Price, Consensus and EPS Surprise

 

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

Quarter in Detail

During the reported quarter, the Seating segment of the company reported net sales of $3.75 billion, up from $3.61 billion in fourth-quarter fiscal 2017.

Adjusted EBITDA for this segment amounted to $301 million, down from $403 million in fourth-quarter fiscal 2017.

The Seat Structures & Mechanisms (SS&M) segment reported revenues of $705 million, up from $670 million in the prior-year quarter. Adjusted EBITDA for this segment amounted to negative $34 million against $4 million in fourth-quarter fiscal 2017.

Financials

Adient had cash and cash equivalents of $687 million as of Sep 30, 2018, compared with $709 million as of Sep 30, 2017.

As of the same date, net debt amounted to $2.7 billion, down from $2.8 billion as of Sep 30, 2017.

Zacks Rank & Key Picks

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

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN, Advance Auto Parts, Inc. AAP and AutoZone, Inc. AZO. While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both Advance Auto Parts and AutoZone carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 10%.

Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 37.3%.

AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have risen 19%.

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