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Aptiv (APTV) to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research

Aptiv PLC APTV is set to report first-quarter 2019 results on May 2, before the bell.

The company has an Earnings ESP of -1.11% and a Zacks Rank #3 (Hold), a combination that lowers the possibility of an earnings beat. This is because per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.

Aptiv PLC Price and EPS Surprise


Aptiv PLC Price and EPS Surprise | Aptiv PLC Quote

The company has had an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the last four quarters with an average positive beat of 5.9%.

The stock has gained 40.6% year to date, significantly outperforming the 23.5% rally of the industry it belongs to.


Recap of Fourth-Quarter Performance

Aptiv’s fourth-quarter earnings of $1.34 per share surpassed the Zacks Consensus Estimate by 13 cents and increased 5% year over year. Revenues of $3.6 billion exceeded the consensus mark by $100 million and increased 6% year over year.

Factors at Play

The top and the bottom line continue to benefit from strong demand for its portfolio of technologies and flexible cost structure.

The Advanced Safety and User Experience segment is in good shape driven by continued strong demand for Active Safety and the infotainment solutions. Consistent progress with automated driving software, vehicle architecture and connected services enables the company to uniquely optimize advanced safety and infotainment user experience solutions, thereby driving business wins.

The Signal and Power Solutions segment also looks promising, courtesy of increasing high voltage electrification and engineered components volumes. The acquisitions of Winchester and KUM have strengthened the segment.

Stocks That Warrant a Look

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 earnings in first-quarter 2019:

WEX WEX has an Earnings ESP of +1.78% and a Zacks Rank #2. The company is scheduled to report results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLEETCOR Technologies FLT has an Earnings ESP of +0.38% and a Zacks Rank #2. The company is scheduled to report results on May 7.

EVERTEC EVTC has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.

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