U.S. Markets closed

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.

Radical New Technology Creates $12.3 Trillion Opportunity

Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.

Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.

See the 7 breakthrough stocks now>>

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
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
To read this article on Zacks.com click here.
Zacks Investment Research