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Autoliv (ALV) Earnings Beat Estimates in Q2, Decline Y/Y

Zacks Equity Research

Autoliv, Inc. ALV reported adjusted earnings of $1.38 per share in second-quarter 2019, beating the Zacks Consensus Estimate of $1.37. However, the bottom line declined from the prior-year quarter figure of $2.22.

During the quarter under review, the company reported net sales of $2.16 billion, reflecting a 2.6% year-over-year decline. The figure was almost in line with the Zacks Consensus Estimate. During the quarter under review, the company’s profitability was strained by high raw material expenses and severe decline in LVP.

Operating income declined 26% year over year to $170 million. Adjusted operating margin from continuing operations was 8.5% in the reported quarter, lower than the prior-year quarter figure of 10.4%.

Autoliv, Inc. Price, Consensus and EPS Surprise

 

Autoliv, Inc. Price, Consensus and EPS Surprise

Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote

Financial Position

Autoliv had cash and cash equivalents of $406.4 million as of Jun 30, 2019, lower than $436.6 million reported as of Mar 31, 2019. Long-term debt was $1.85 billion as of Jun 30, 2019, witnessing an increase from $1.6 billion as of Mar 31, 2019.

Net capital expenditure increased to $127.8 million from the year-ago figure of $125.2 million.

Guidance

For 2019, Autoliv’s organic sales growth is projected to be 1-3%, down from around 5% mentioned earlier. Consolidated sales growth is expected to be between negative 1% and 1%. The same was pegged at around 3% in the previous guidance. Further, adjusted operating margin is projected to be 9-9.5%, down from about 10.5% stated earlier.

Zacks Rank & Stocks to Consider

Autoliv currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the auto space are Copart, Inc CPRT, CarMax, Inc KMX and AutoZone, Inc AZO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Copart has an expected long-term growth rate of 20%. In the past six months, shares of the company have shot up 57.3%.

CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 43.8%.

AutoZone has an expected long-term growth rate of 12.2%. In the past six months, shares of the company have improved 40.5%.

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