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Autoliv (ALV) Q4 Earnings and Revenues Surpass Estimates

Zacks Equity Research
·3 mins read

Autoliv, Inc. ALV reported adjusted earnings of $1.84 per share in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.78. Higher-than-expected revenues across both its segments led to this outperformance. The bottom-line figure also increased from the prior-year quarter tally of $1.42.

The company reported net sales of $2,191 million in the quarter, down from the prior-year quarter figure of 2,193 million. However, the figure beat the Zacks Consensus Estimate of $2.14 billion.

Adjusted operating income inched up 1% year over year to $242 million. Adjusted operating margin from continuing operations was 11.1% in the reported quarter, higher than the prior-year quarter’s10.9%.

Autoliv, Inc. Price, Consensus and EPS Surprise

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

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

Segmental Performance

Sales in the Airbags and Associated Products segment totaled $1,444 million, topping the Zacks Consensus Estimate of $1,428 million. However, revenues from the segment edged down around 1.37%, year over year. The company faced headwinds from lower inflator sales as well as bleak sales of inflatable curtains and side airbags, resulting in this decline. Nonetheless, solid performance of driver and knee airbags, steering wheels, and passenger airbags mainly stoked the segment’s growth in the fourth quarter.

Sales in the Seatbelts and Associated Products segment totaled $747.6 million, up 2.5% from the prior-year quarter and surpassed the consensus mark of $721 million. Stellar performance in China and Americas, partly offset by declines in Japan and South Korea, aided this outperformance.

Financial Position

Autoliv had cash and cash equivalents of $444.7 million as of Dec 31, 2019, lower than $615.8 million reported as of Dec 31, 2018. Long-term debt was $1.73 billion as of Dec 31, 2019, witnessing an increase from $1.61 billion as of Dec 31, 2018.The long-term debt-to-capital ratio stands at 44.85%.

Net capital expenditure decreased to $118 million from the year-ago figure of $133.4 million during the reported quarter.

Guidance

For 2020, Autoliv’s organic sales growth as well as net sales growth is expected to be 3-4%. Further, adjusted operating margin is projected at 9.5%.

Zacks Rank & Stocks to Consider

Autoliv currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks sector include Gentex Corporation GNTX, Tesla, Inc. TSLA and SPX Corporation SPXC, each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Gentex Corporation has an estimated earnings growth rate of 7.32% for 2020. The company’s shares have appreciated 40.3% in a year’s time.

Tesla has a projected earnings growth rate of 6,460% for the ongoing year. Its shares have surged 83.6% over the past year.

SPX has an expected earnings growth rate of 8.09% for the current year. The stock has rallied 73.2% in the past year.

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