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Autoliv (ALV) Earnings Miss Estimates in Q1, Decline Y/Y

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Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.20 per share in first-quarter 2019, missing the Zacks Consensus Estimate of $1.57. Moreover, the bottom line declined from the prior-year quarter figure of $1.82.

During the quarter under review, the company reported net sales of $2.17 billion, reflecting a 3% year-over-year decline. The figure was in line with the Zacks Consensus Estimate. Quarterly organic sales grew 1.8%, which outpaced global light-vehicle production, majorly driven by the Americas and China.

Operating income from continuing operations declined 29% year over year to $173 million. Adjusted operating margin from continuing operations was 7.7% in the reported quarter, lower than the prior-year quarter figure of 10.9%.

Autoliv, Inc. Price, Consensus and EPS Surprise

 

Financial Position

Autoliv had cash and cash equivalents of $437 million as of Mar 31, 2019, lower than $794million reported as of Mar 31, 2018. Long-term debt was $1.6 billion as of Mar 31, 2019, witnessing an increase from $1.3 billion as of Mar 31, 2018.

At the end of first-quarter 2019, the company’s operating cash flow increased to $154 million from the year-ago figure of $81 million. Net capital expenditure decreased to $108 million from the year-ago figure of $139 million.

Guidance

For 2019, Autoliv reiterated organic sales growth projection of around 5%. Consolidated sales growth is expected to be approximately 3%. Further, adjusted operating margin is projected to be around 10.5%.

Zacks Rank & Stocks to Consider

Autoliv currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are PACCAR, Inc. (PCAR - Free Report) , SPX Corporation (SPXC - Free Report) and AB Volvo (VLVLY - Free Report) . PACCAR and SPX Corp currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.16% upward over the past 30 days.

SPX Corp has an expected current year growth rate of 18.2%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.39% upward over the past 30 days.

Volvo has an expected long-term growth rate of 5%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 8.1% upward over the past 30 days.

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