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Autoliv Q3 Earnings Miss Expectations, Guidance Trimmed
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Autoliv Inc. (ALV - Free Report) reported third-quarter 2024 adjusted earnings of $1.84 per share, which missed the Zacks Consensus Estimate of $2 but rose 11% year over year. The company reported net sales of $2.56 billion in the quarter, which beat the Zacks Consensus Estimate of $2.54 million but fell 1.6% year over year.
Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.
Organic sales fell 0.8% year over year and missed our estimate of 1.5% due to a negative light vehicle production mix in China. Autoliv reported adjusted operating income of $237 million, down 2.3% year over year. Adjusted operating margin was 9.3%, lower than 9.4% in the year-ago period due to the lower gross profit, higher selling, general and administrative costs and other expenses.
Sales in the Airbags and Associated Products segment totaled $1.74 billion, lagging our projection of $1.85 billion. Revenues also fell 1.4% on a year-over-year basis. The major categories within the segment that reported a decline in organic sales include passenger airbags, inflatable curtains, knee airbags and driver airbags.
Sales in the Seatbelts and Associated Products segment totaled $819 million, down 2% from the prior-year quarter due to the decline in organic sales in China. The metric, however, surpassed our projection of $764.8 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $851 million, which missed our estimate of $929.3 million and decreased 7.2% year over year.
Sales in Europe totaled $700 million, which surpassed our forecast of $645.4 million and increased 8.4% year over year.
Sales in China came in at $495 million, missing our projection of $536.9 million and fell 8.1% year over year.
Sales in the Rest of Asia totaled $508 million, which increased 2.7% year over year and topped our projection of $500 million.
Financial Position
Autoliv had cash and cash equivalents of $415 million as of Sept. 30, 2024. Long-term debt totaled $1.59 billion. Operating cash flow in the quarter under review was $177 million and capital expenditure amounted to $145 million, resulting in a free cash flow of $32 million. In the quarter, ALV paid a dividend of 68 cents per share and repurchased 1.33 million shares.
ALV Revises 2024 Guidance
The company now forecasts full-year 2024 organic sales growth of around 1%, down from the earlier expectation of 2%. The adjusted operating margin is anticipated in the range of 9.5-10%. Operating cash flow is expected to be $1.1 billion in 2024.
Zacks Rank & Key Picks
Autoliv currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for MOD’s fiscal 2025 sales and earnings suggests year-over-year growth of 8.44% and 18.77%, respectively. Earnings per share (EPS) estimates for fiscal 2025 and 2026 have improved by a penny and 8 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2024 earnings suggests year-over-year growth of 21.88%. EPS estimates for 2024 and 2025 have improved by 7 cents and 13 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for SZKMY’s fiscal 2025 sales and earnings suggests year-over-year growth of 7.36% and 22.51%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 78 cents and 99 cents, respectively, in the past 60 days.
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Autoliv Q3 Earnings Miss Expectations, Guidance Trimmed
Autoliv Inc. (ALV - Free Report) reported third-quarter 2024 adjusted earnings of $1.84 per share, which missed the Zacks Consensus Estimate of $2 but rose 11% year over year. The company reported net sales of $2.56 billion in the quarter, which beat the Zacks Consensus Estimate of $2.54 million but fell 1.6% year over year.
Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.
Organic sales fell 0.8% year over year and missed our estimate of 1.5% due to a negative light vehicle production mix in China. Autoliv reported adjusted operating income of $237 million, down 2.3% year over year. Adjusted operating margin was 9.3%, lower than 9.4% in the year-ago period due to the lower gross profit, higher selling, general and administrative costs and other expenses.
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 $1.74 billion, lagging our projection of $1.85 billion. Revenues also fell 1.4% on a year-over-year basis. The major categories within the segment that reported a decline in organic sales include passenger airbags, inflatable curtains, knee airbags and driver airbags.
Sales in the Seatbelts and Associated Products segment totaled $819 million, down 2% from the prior-year quarter due to the decline in organic sales in China. The metric, however, surpassed our projection of $764.8 million.
Region-wise, overall sales in the Americas during the quarter under review totaled $851 million, which missed our estimate of $929.3 million and decreased 7.2% year over year.
Sales in Europe totaled $700 million, which surpassed our forecast of $645.4 million and increased 8.4% year over year.
Sales in China came in at $495 million, missing our projection of $536.9 million and fell 8.1% year over year.
Sales in the Rest of Asia totaled $508 million, which increased 2.7% year over year and topped our projection of $500 million.
Financial Position
Autoliv had cash and cash equivalents of $415 million as of Sept. 30, 2024. Long-term debt totaled $1.59 billion. Operating cash flow in the quarter under review was $177 million and capital expenditure amounted to $145 million, resulting in a free cash flow of $32 million. In the quarter, ALV paid a dividend of 68 cents per share and repurchased 1.33 million shares.
ALV Revises 2024 Guidance
The company now forecasts full-year 2024 organic sales growth of around 1%, down from the earlier expectation of 2%. The adjusted operating margin is anticipated in the range of 9.5-10%. Operating cash flow is expected to be $1.1 billion in 2024.
Zacks Rank & Key Picks
Autoliv currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , BYD Company Limited (BYDDY - Free Report) and Suzuki Motor Corporation (SZKMY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2025 sales and earnings suggests year-over-year growth of 8.44% and 18.77%, respectively. Earnings per share (EPS) estimates for fiscal 2025 and 2026 have improved by a penny and 8 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2024 earnings suggests year-over-year growth of 21.88%. EPS estimates for 2024 and 2025 have improved by 7 cents and 13 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for SZKMY’s fiscal 2025 sales and earnings suggests year-over-year growth of 7.36% and 22.51%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 78 cents and 99 cents, respectively, in the past 60 days.