Aptiv's (APTV) Q3 Earnings Beat Estimates, Increase Y/Y
Aptiv PLC APTV reported better-than-expected third-quarter 2023 results.
Adjusted earnings (excluding $4.46 from non-recurring items) of $1.30 per share beat the Zacks Consensus Estimate by 8.3% and increased 1.6% year over year. Revenues of $5.1 billion surpassed the Zacks Consensus Estimate by 2.5% and improved 10.8% year over year.
It also registered growth of 10%, 10%, 2% and 12% in Europe, North America, Asia and South America, respectively. However, revenues were flat in China.
Aptiv PLC Price, Consensus and EPS Surprise
Aptiv PLC price-consensus-eps-surprise-chart | Aptiv PLC Quote
Other Quarterly Numbers
Signal and Power Solutions’ revenues of $3.7 billion gained 8% year over year and beat our estimate of $3.68 billion. The Advanced Safety and User Experience segment’s revenues were up 20% year over year to $1.5 billion and surpassed our estimate of $1.2 billion.
Adjusted operating income was $560 million, up 6.6% from the year-ago figure. This compares favorably with our expectation of $496.2 million.
Adjusted operating income margin was 11% compared with 11.4% in the prior year. Our projection was 10.1%.
Aptiv exited the quarter with a cash and cash equivalent balance of $1.8 billion compared with the prior quarter’s $1.3 billion. Long-term debt was $6.4 billion compared with $6.5 billion in the previous quarter.
Total available liquidity at third-quarter end was $4.3 billion compared with $3.8 billion at the end of the prior quarter. In the quarter, APTV generated $746 million in cash from operating activities.
2023 Outlook Unchanged
Aptiv expects revenues to be $19.95-$20.25 billion. The midpoint of the guided range ($20.1 billion) is higher than the Zacks Consensus Estimate of $20.01 billion.
Adjusted EPS is projected to be between $4.60 and $4.90. The midpoint of the guided range ($4.75) is higher than the Zacks Consensus Estimate of $4.72.
Adjusted operating income margin is anticipated to be between 10.4% and 10.7%. Capital expenditure is suggested to be $950 million.
Adjusted EBITDA margin is envisioned to be between 13.8% and 14.1%. Adjusted effective tax rate is forecast to be 12.5%.
Currently, Aptiv carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. IPG posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis. Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
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