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Aptiv (APTV) to Post Q2 Earnings: What's in the Offing?

Zacks Equity Research

Aptiv PLC APTV is set to report second-quarter 2019 results on Jul 31, before the bell.

The company’s shares have gained 33.9% year to date, significantly outperforming the 24.7% rally of the industry it belongs to.

How Things are Shaping Up

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.62 billion, indicating year-over-year decline of 1.6%. The expected decline is likely to be due to a challenging global demand environment.

The company expects global vehicle production to be down 5% year over year in the second quarter with 12% decline in China and 9% in Europe.

In the first quarter, Aptiv’s revenues of $3.58 billion declined 1.5% year over year.

The consensus mark for earnings in the to-be-reported quarter stands at $1.13, indicating year-over-year decline of 19.3%. Foreign exchange, commodity and tariff headwinds are expected to weigh on the bottom line.

In the first quarter, adjusted earnings of $1.05 per share were down 18.6% on a year-over-year basis.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or #3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or #5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Aptiv has a Zacks Rank #3 and an Earnings ESP of -0.93%.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on second-quarter 2019 earnings:

S&P Global SPGI has an Earnings ESP of +0.94% and a Zacks Rank #2.  The company is slated to report results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Clean Harbors CLH has an Earnings ESP of +3.23% and a Zacks Rank #3. The company is slated to report results on Jul 31.

Green Dot GDOT has an Earnings ESP of +0.89% and a Zacks Rank #3. The company is slated to release results on Aug 7.

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S&P Global Inc. (SPGI) : Free Stock Analysis Report
 
Green Dot Corporation (GDOT) : Free Stock Analysis Report
 
Clean Harbors, Inc. (CLH) : Free Stock Analysis Report
 
Aptiv PLC (APTV) : Free Stock Analysis Report
 
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