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Autoliv (ALV) Q4 Earnings Miss Estimates, Revenues Up Y/Y

Zacks Equity Research

Autoliv, Inc. ALV reported adjusted earnings of $1.42 per share in fourth-quarter 2018, missing the Zacks Consensus Estimate of $1.62. Moreover, the bottom line declined from the prior-year quarter figure of $2.29.

During the quarter under review, Autoliv reported net sales of $2.19 billion from continuing operations, reflecting 1.6% year-over-year rise. The Zacks Consensus Estimate for the same was pegged at $2.24 billion. Quarterly organic sales grew 4.2%, majorly driven by 19% organic sales increase in the Americas.

Operating income from continuing operations plunged 91.6% to $21 million. Adjusted operating margin from continuing operations was 10.9% in the reported quarter, lower than the prior-year quarter figure of 11.8%.

Autoliv, Inc. Price, Consensus and EPS Surprise

 

Autoliv, Inc. Price, Consensus and EPS Surprise | Autoliv, Inc. Quote

2018 Results

For 2018, net sales rose 6.7% to $8.68 billion, up 6.7% from 2017.

Adjusted earnings per share from continuing operations were $6.83, down from the 2017 figure of $7.12.

Financial Position

Autoliv had cash and cash equivalents of $615.8 million as of Dec 31, 2018, lower than $959.5 million reported as of Dec 31, 2017. Long-term debt was $1.61 billion as of Dec 31, 2018, witnessing an increase from $1.31 billion as of Dec 31, 2017.

At the end of fourth-quarter 2018, the company’s operating cash flow decreased to $289.4 million compared with the year-ago figure of $389.4 million. Net capital expenditure decreased to $133.4 million from the year-ago figure of $167.8 million.

Guidance

For 2019, Autoliv anticipates organic sales growth of around 5% for continuing operations. Combining a positive currency translation of approximately 1%, the company expects a consolidated sales boost of approximately 4%. Further, adjusted operating margin for continuing operations is projected to be around 10.5% in 2019.

Zacks Rank and Stocks to Consider

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

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN, Dana Incorporated DAN and General Motors Company GM, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have surged 10.3%.

Dana has an expected long-term growth rate of 2.9%. Over the past three months, shares of the company have risen 18.2%.

General Motors has an expected long-term growth rate of 8.5%. Over the three months, shares of the company have risen 14.7%.

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