U.S. markets closed
  • S&P 500

    3,841.94
    +73.47 (+1.95%)
     
  • Dow 30

    31,496.30
    +572.20 (+1.85%)
     
  • Nasdaq

    12,920.15
    +196.65 (+1.55%)
     
  • Russell 2000

    2,192.21
    +45.29 (+2.11%)
     
  • Crude Oil

    66.28
    +0.19 (+0.29%)
     
  • Gold

    1,698.20
    -0.30 (-0.02%)
     
  • Silver

    25.30
    +0.01 (+0.03%)
     
  • EUR/USD

    1.1916
    -0.0063 (-0.52%)
     
  • 10-Yr Bond

    1.5540
    +0.0040 (+0.26%)
     
  • GBP/USD

    1.3834
    -0.0060 (-0.43%)
     
  • USD/JPY

    108.3940
    +0.4180 (+0.39%)
     
  • BTC-USD

    49,991.13
    +1,476.46 (+3.04%)
     
  • CMC Crypto 200

    982.93
    +39.75 (+4.21%)
     
  • FTSE 100

    6,630.52
    -20.36 (-0.31%)
     
  • Nikkei 225

    28,864.32
    -65.78 (-0.23%)
     

Adient's (ADNT) Q4 Earnings Surpass, Sales Lag Estimates

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

Adient PLC ADNT reported adjusted earnings per diluted share of $1.15 in fourth-quarter fiscal 2020, beating the Zacks Consensus Estimate of 96 cents. This outperformance can be attributed to the higher-than-anticipated revenues from the company’s Americas segment. Better-than-expected contribution from each segment also drove the results.

Moreover, the bottom line compares favorably with the year-ago earnings of 63 cents per share, marking a year-over-year surge of 82.5%.

During the reported quarter, Adient generated net sales of $3,597 million, down from the $3,921 million recorded in the prior-year quarter, due to disappointing global production volumes. The top-line figure also missed the Zacks Consensus Estimate of $3,644 million.

Adient PLC Price, Consensus and EPS Surprise

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

Adient PLC price-consensus-eps-surprise-chart | Adient PLC Quote

Segmental Performance

Adient currently operates through three reportable segments — Americas, which includes North America and South America; Europe, Middle East, and Africa (EMEA); and Asia Pacific/China (Asia).

For the reported quarter, the Americas segment recorded revenues of $1,796 million, down from the $1,925 million generated in the year-ago period. The revenue figure, however, surpassed the Zacks Consensus Estimate of $1,782 million. Adient posted adjusted EBITDA of $111 million in the fiscal fourth quarter, up from the $64 million recorded in the prior-year period, primarily on lower selling, general and administration (SG&A) costs as well as positive business performance, partially offset by the negative impact of lower volumes. The metric also topped the consensus mark of $79 million.

For the fiscal fourth quarter, the EMEA segment registered revenues of $1,398 million, dropping 7.1% year over year. However, the reported figure marginally surpassed the consensus mark of $1,396 million. Its quarterly EBITDA came in at $84 million, higher than the prior-year quarter’s profit of $47 million. This upside resulted from decreased SG&A costs and a positive business performance, partially negated by the adverse impact of dismal volumes. The metric also topped the consensus mark of $51 million.

For the September-end quarter, revenues in the Asia segment came in at $460 million compared with the year-earlier quarter’s $558 million. The figure, moreover, missed the Zacks Consensus Estimate of $497 million. The company’s adjusted EBITDA was $113 million compared with the $126 million reported in fourth-quarter fiscal 2019 on lackluster industry volumes, slightly muted by rise in seating equity income and reduced SG&A costs. However, the metric topped the consensus mark of $105 million.

Financial Position

Adient had cash and cash equivalents of $1,692 million as of Sep 30, 2020, compared with $924 million as of Sep 30, 2019. As of the same date, long-term debt amounted to $4,097 million, up from $3,708 billion as of Sep 30, 2019. Capital expenditure declined to $68 million in the fiscal fourth quarter from the $118 million recorded in the prior-year quarter.

Fiscal 2020 Highlights

For the fiscal year, the company registered adjusted loss per diluted share of 4 cents compared with the earnings of $1.63 reported in the previous fiscal year.

Net sales for fiscal 2020 came in at $12,670 million, down from the $16,526 million reported in the prior fiscal year.

Fiscal 2021 Outlook

For fiscal 2021, Adient expects revenues of $14.6-$15 billion. Adjusted EBITDA is anticipated in the band of $1-$1.1 billion. Moreover, the company projects free cash flow of upto 100 million.

Zacks Rank & Other Stocks to Consider

Adient currently carries a Zacks Rank #2 (Buy). Shares of the company have appreciated 55.8%, year to date, while the industry has witnessed a rise of 12.3%.

Other top-ranked stocks in the auto sector include Autoliv, Inc. ALV, Lear Corporation LEA, Magna International MGA, each sporting a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
 
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Magna International Inc. (MGA) : Free Stock Analysis Report
 
Autoliv, Inc. (ALV) : Free Stock Analysis Report
 
Lear Corporation (LEA) : Free Stock Analysis Report
 
Adient PLC (ADNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research