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Autoliv (ALV) Stock Up 7% Since Q1 Earnings & Sales Beat

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Shares of Autoliv Inc. (ALV - Free Report) have rallied 7% since the company reported first-quarter 2024 results. It reported adjusted earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.40 and rose 75.5% year over year. The outperformance can be attributed to better-than-expected sales across both units. The company reported net sales of $2.61 billion in the quarter, which topped the Zacks Consensus Estimate of $2.57 million and rose 4.9% year over year.

Organic sales rose 5% year over year and outpaced our estimate of 3.7% due to product launches and higher prices. Autoliv reported adjusted operating income of $199 million, up 51% year over year. Adjusted operating margin was 7.6%, higher than 5.3% in the year-ago period, driven by organic growth and cost control efforts. 

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 $1.78 billion, beating our projection of $1.76 billion. Revenues rose 6.5% on a year-over-year basis. All major categories within the segment witnessed organic sales growth, the primary reason being a rise in sales of steering wheels, followed by inflatable curtains, side airbags and driver airbags.

Sales in the Seatbelts and Associated Products segment totaled $834 million, up 1.7% from the prior-year quarter and topped our projection of $821 million. Organic growth in the Americas, Europe and Asia, excluding China, contributed to the year-over-year increase.

Region-wise, overall sales in the Americas during the quarter under review totaled $893 million, which surpassed our estimate of $864 million and increased 7.5% year over year.

Sales in Europe totaled $770 million, topping our forecast of $755 million and increasing 6.1% year over year.

Sales in China came in at $460 million, missing our projection of $464.6 million but rising 1.7% year over year.

Sales in the Rest of Asia totaled $491 million, up 1.7% year over year but missed our projection of $500.7 million.

Financial Position

Autoliv had cash and cash equivalents of $569 million as of Mar 31, 2024. Long-term debt totaled $1.83 billion. Operating cash flow in the quarter under review was $122 million and capital expenditure amounted to $140 million, resulting in a negative free cash flow of $18 million. In the quarter, ALV paid a dividend of 68 cents per share and repurchased $1.37 million shares.

2024 Guidance

The company forecasts full-year 2024 organic sales growth of around 5%. The adjusted operating margin is anticipated to be approximately 10.5%. Operating cash flow is expected to be $1.2 billion in 2024.

Autoliv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Oshkosh Corporation (OSK - Free Report) reported first-quarter 2024 adjusted earnings of $2.89 per share, beating the Zacks Consensus Estimate of $2.26. The bottom line also rose from $1.59 per share recorded in the year-ago period. Consolidated net sales climbed 12.2% year over year to $2.54 billion. The top line also surpassed the Zacks Consensus Estimate of $2.51 billion. OSK had cash and cash equivalents of $69.9 million as of Mar 31, 2024, compared with $125.4 million as of Dec 31, 2023. The company had a long-term debt of $598.9 million, up from $597.5 million as of Dec 31, 2023.

BorgWarner (BWA - Free Report) reported adjusted earnings of $1.03 per share for first-quarter 2024, down from $1.09 per share recorded in the prior-year quarter. The bottom line, however, surpassed the Zacks Consensus Estimate of 87 cents. It reported net sales of $3.6 billion, beating the Zacks Consensus Estimate of $3.52 billion. The top line, however, declined 13.9% year over year. As of Mar 31, 2024, BWA had $1.03 billion in cash/cash equivalents/restricted cash compared with $1.53 billion as of Dec 31, 2023. As of Mar 31, long-term debt was $3.3 billion, down from $3.7 billion recorded on Dec 31, 2023.

Gentex Corp. (GNTX - Free Report) reported first-quarter 2024 adjusted EPS of 47 cents, which came in line with the Zacks Consensus Estimate and grew 12% year over year. It reported net sales of $590.2 million, which missed the Zacks Consensus Estimate of $600 million but increased 7% from the year-ago period. Gentex had cash and cash equivalents of about $249 million as of Mar 31, 2024. The company had nearly 14.7 million shares remaining for buyback as of Mar 31.


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