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Adient (ADNT) Misses Q4 Earnings Estimates, Shares Down

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Shares of Adient plc (ADNT - Free Report) have declined 15.7% in a day’s trading, following the first-quarter fiscal 2019 earnings release. In the reported quarter,the company’s adjusted earnings per share were31 cents, missing the Zacks Consensus Estimate of 48 cents. The adjusted bottom-line figure in the year-ago quarter was $1.05 per share. The decline was due to negative business performance, owing to launch inefficiencies.

During the quarter under review, Adient reported net sales of $4.16 billion, a decline from $4.2 billion recorded in first-quarter fiscal 2018. Further, the top line missed the Zacks Consensus Estimate of $4.17 billion.

Net income attributed to Adient was $17 million against net loss of $216 million in the prior-year quarter.

Adient PLC Price, Consensus and EPS Surprise

 

Quarter in Detail

During the reported quarter, the Seating segment of the company reported net sales of $3.7 billion, down from $3.8billion in first-quarter fiscal 2018. The segment’s adjusted EBIDTA was $261 million compared with $354 million recorded in the prior-year quarter.

The Seat Structures & Mechanisms (SS&M) segment reported net sales of $727 million, up from $718 million in the prior-year quarter. Adjusted EBITDA for this segment amounted to negative $72 million compared withnegative $82 million in the firstquarter of the previous fiscal year.

Financials

Adient had cash and cash equivalents of $406 million as of Dec 31, 2018, compared with $687 million as of Sep 30, 2018.As of the same date, net debt amounted to $3 billion, up from $2.7 billion as of Sep 30, 2018.

In the first three months of fiscal 2019, cash used by operating activities was $128 million, almost similar to the same period of fiscal 2018. Capital expenditure rose to $144 million from $143 million recorded in the first quarter of the priorfiscal year.

Zacks Rank & Stocks to Consider

Adient currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are General Motors Company (GM - Free Report) , Cooper Tire & Rubber Company , and Genuine Parts Company (GPC - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

General Motors has an expected long-term growth rate of 8.5%. Share price of the company has increased 3.1% in the past six months.

Cooper Tire has an expected long-term growth rate of 4%. Over the past six months, shares of the company have gained 11.1%.

Genuine Parts has an expected long-term growth rate of 5%. Shares of the company have gained 3.6% in the past six months.

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