A month has gone by since the last earnings report for Delphi Automotive PLC . Shares have added nearly 5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Delphi Automotive Beats on Q4 Earnings, Revenues
Delphi Automotive posted a 32% increase in adjusted earnings to $1.83 per share in the fourth quarter of 2016 from $1.39 earned in the prior-year quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $1.60.
Adjusted net income increased to $498 million from $391 million a year ago. Including special items, Delphi Automotive reported net income of $281 million or $1.03 per share in the fourth quarter of 2016, up from $199 million or $0.70 per share a year ago.
Revenues rose 11% year over year to $4.3 billion and surpassed the Zacks Consensus Estimate of $4.15 billion. The year-over-year increase was supported by the acquisition of HellermannTyton Group PLC and volume growth in North America, Europe and the Asia Pacific.
Excluding the impact of currency exchange, commodity movements, acquisitions and divestitures, revenues increased 10% year over year. The upside was led by performance improvement of 16% in Asia, 9% in North America, 7% in South America and 5% in Europe.
Adjusted operating income rose to $606 million from $503 million in the fourth quarter of 2015. Adjusted operating margin increased to 14.1% from 13% in the year-ago quarter. The rise in margins can be attributed to strong performance in the Asia Pacific, Europe and North America, an increase in earnings from the acquisition of HellermannTyton, and successful cost-reduction initiatives, partially offset by continued investments for growth.
2016 Results
Delphi Automotive reported adjusted earnings of $6.28 per share in 2016, up 20% from $5.22 per share in 2015. Earnings per share for 2016 also exceeded the Zacks Consensus Estimate of $6.05.
Adjusted net income increased to $1.72 billion from $1.50 billion a year ago. Including special items, Delphi Automotive reported profits of $1.15 billion or $4.21 per share in 2016, compared with $1.19 billion or $4.14 per share in 2015.
Revenues increased 10% to $16.7 billion. Also, the figure beat the Zacks Consensus Estimate of $16.5 billion. The increase was driven by the acquisition of HellermannTyton and volume growth in North America, Europe and the Asia Pacific.
Segment Details
In the Electrical/Electronic Architecture segment, revenues improved 13% to $2.4 billion in the reported quarter. Adjusted operating income grew 38% to $380 million.
In the Powertrain Systems segment, revenues rose 3% to $1.15 billion. Adjusted operating income fell 10% to $133 million.
The Electronics and Safety segment’s revenues increased 17% to $806 million. Adjusted operating income improved 16% to $93 million.
Share Repurchases
In 2016, Delphi Automotive repurchased 9.48 million shares for approximately $635 million. Following this, the company had $1.37 billion available for repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $838 million as of Dec 31, 2016, compared with $535 million as of Dec 31, 2015. Total debt amounted to $3.97 billion as of Dec 31, 2016, compared with $4.01 billion as of Dec 31, 2015.
In 2016, operating cash flow increased to $1.94 billion from $1.67 billion in 2015. Capital expenditure totaled $828 million compared with $704 million a year ago.
Outlook
For 2017, Delphi Automotive revealed its revenue guidance of $16.5–$16.9 billion. Adjusted earnings per share are expected in the range of $6.40–$6.70.
Adjusted operating income is anticipated in the range of $2.19–$2.29 billion (13.3–13.5% of sales) in 2017. Meanwhile, capital expenditure is projected to be around $850 million and operating cash flow is expected to be about $2.1 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one upward revision for the current quarter compared with four lower. While looking back an additional 30 days, we can see even more downward momentum. There have been five downward revisions in the last two months.
VGM Scores
At this time, Delphi Automotive stock has a great Growth Score of 'A' and a Momentum Score of 'B'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Delphi Automotive (DLPH) Up 5% Since the Last Earnings Report?
A month has gone by since the last earnings report for Delphi Automotive PLC . Shares have added nearly 5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Delphi Automotive Beats on Q4 Earnings, Revenues
Delphi Automotive posted a 32% increase in adjusted earnings to $1.83 per share in the fourth quarter of 2016 from $1.39 earned in the prior-year quarter. Moreover, earnings per share surpassed the Zacks Consensus Estimate of $1.60.
Adjusted net income increased to $498 million from $391 million a year ago. Including special items, Delphi Automotive reported net income of $281 million or $1.03 per share in the fourth quarter of 2016, up from $199 million or $0.70 per share a year ago.
Revenues rose 11% year over year to $4.3 billion and surpassed the Zacks Consensus Estimate of $4.15 billion. The year-over-year increase was supported by the acquisition of HellermannTyton Group PLC and volume growth in North America, Europe and the Asia Pacific.
Excluding the impact of currency exchange, commodity movements, acquisitions and divestitures, revenues increased 10% year over year. The upside was led by performance improvement of 16% in Asia, 9% in North America, 7% in South America and 5% in Europe.
Adjusted operating income rose to $606 million from $503 million in the fourth quarter of 2015. Adjusted operating margin increased to 14.1% from 13% in the year-ago quarter. The rise in margins can be attributed to strong performance in the Asia Pacific, Europe and North America, an increase in earnings from the acquisition of HellermannTyton, and successful cost-reduction initiatives, partially offset by continued investments for growth.
2016 Results
Delphi Automotive reported adjusted earnings of $6.28 per share in 2016, up 20% from $5.22 per share in 2015. Earnings per share for 2016 also exceeded the Zacks Consensus Estimate of $6.05.
Adjusted net income increased to $1.72 billion from $1.50 billion a year ago. Including special items, Delphi Automotive reported profits of $1.15 billion or $4.21 per share in 2016, compared with $1.19 billion or $4.14 per share in 2015.
Revenues increased 10% to $16.7 billion. Also, the figure beat the Zacks Consensus Estimate of $16.5 billion. The increase was driven by the acquisition of HellermannTyton and volume growth in North America, Europe and the Asia Pacific.
Segment Details
In the Electrical/Electronic Architecture segment, revenues improved 13% to $2.4 billion in the reported quarter. Adjusted operating income grew 38% to $380 million.
In the Powertrain Systems segment, revenues rose 3% to $1.15 billion. Adjusted operating income fell 10% to $133 million.
The Electronics and Safety segment’s revenues increased 17% to $806 million. Adjusted operating income improved 16% to $93 million.
Share Repurchases
In 2016, Delphi Automotive repurchased 9.48 million shares for approximately $635 million. Following this, the company had $1.37 billion available for repurchases under its current share buyback program.
Financial Position
Delphi Automotive had cash and cash equivalents of $838 million as of Dec 31, 2016, compared with $535 million as of Dec 31, 2015. Total debt amounted to $3.97 billion as of Dec 31, 2016, compared with $4.01 billion as of Dec 31, 2015.
In 2016, operating cash flow increased to $1.94 billion from $1.67 billion in 2015. Capital expenditure totaled $828 million compared with $704 million a year ago.
Outlook
For 2017, Delphi Automotive revealed its revenue guidance of $16.5–$16.9 billion. Adjusted earnings per share are expected in the range of $6.40–$6.70.
Adjusted operating income is anticipated in the range of $2.19–$2.29 billion (13.3–13.5% of sales) in 2017. Meanwhile, capital expenditure is projected to be around $850 million and operating cash flow is expected to be about $2.1 billion.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one upward revision for the current quarter compared with four lower. While looking back an additional 30 days, we can see even more downward momentum. There have been five downward revisions in the last two months.
Delphi Automotive PLC Price and Consensus
Delphi Automotive PLC Price and Consensus | Delphi Automotive PLC Quote
VGM Scores
At this time, Delphi Automotive stock has a great Growth Score of 'A' and a Momentum Score of 'B'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.