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Autoliv (ALV) Earnings Beat Estimates in Q2, Decline Y/Y
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Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.38 per share in second-quarter 2019, beating the Zacks Consensus Estimate of $1.37. However, the bottom line declined from the prior-year quarter figure of $2.22.
During the quarter under review, the company reported net sales of $2.16 billion, reflecting a 2.6% year-over-year decline. The figure was almost in line with the Zacks Consensus Estimate. During the quarter under review, the company’s profitability was strained by high raw material expenses and severe decline in LVP.
Operating income declined 26% year over year to $170 million. Adjusted operating margin from continuing operations was 8.5% in the reported quarter, lower than the prior-year quarter figure of 10.4%.
Autoliv had cash and cash equivalents of $406.4 million as of Jun 30, 2019, lower than $436.6 million reported as of Mar 31, 2019. Long-term debt was $1.85 billion as of Jun 30, 2019, witnessing an increase from $1.6 billion as of Mar 31, 2019.
Net capital expenditure increased to $127.8 million from the year-ago figure of $125.2 million.
Guidance
For 2019, Autoliv’s organic sales growth is projected to be 1-3%, down from around 5% mentioned earlier. Consolidated sales growth is expected to be between negative 1% and 1%. The same was pegged at around 3% in the previous guidance. Further, adjusted operating margin is projected to be 9-9.5%, down from about 10.5% stated earlier.
Copart has an expected long-term growth rate of 20%. In the past six months, shares of the company have shot up 57.3%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 43.8%.
AutoZone has an expected long-term growth rate of 12.2%. In the past six months, shares of the company have improved 40.5%.
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Autoliv (ALV) Earnings Beat Estimates in Q2, Decline Y/Y
Autoliv, Inc. (ALV - Free Report) reported adjusted earnings of $1.38 per share in second-quarter 2019, beating the Zacks Consensus Estimate of $1.37. However, the bottom line declined from the prior-year quarter figure of $2.22.
During the quarter under review, the company reported net sales of $2.16 billion, reflecting a 2.6% year-over-year decline. The figure was almost in line with the Zacks Consensus Estimate. During the quarter under review, the company’s profitability was strained by high raw material expenses and severe decline in LVP.
Operating income declined 26% year over year to $170 million. Adjusted operating margin from continuing operations was 8.5% in the reported quarter, lower than the prior-year quarter figure of 10.4%.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. price-consensus-eps-surprise-chart | Autoliv, Inc. Quote
Financial PositionAutoliv had cash and cash equivalents of $406.4 million as of Jun 30, 2019, lower than $436.6 million reported as of Mar 31, 2019. Long-term debt was $1.85 billion as of Jun 30, 2019, witnessing an increase from $1.6 billion as of Mar 31, 2019.
Net capital expenditure increased to $127.8 million from the year-ago figure of $125.2 million.
Guidance
For 2019, Autoliv’s organic sales growth is projected to be 1-3%, down from around 5% mentioned earlier. Consolidated sales growth is expected to be between negative 1% and 1%. The same was pegged at around 3% in the previous guidance. Further, adjusted operating margin is projected to be 9-9.5%, down from about 10.5% stated earlier.
Zacks Rank & Stocks to Consider
Autoliv currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Copart, Inc (CPRT - Free Report) , CarMax, Inc (KMX - Free Report) and AutoZone, Inc (AZO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copart has an expected long-term growth rate of 20%. In the past six months, shares of the company have shot up 57.3%.
CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 43.8%.
AutoZone has an expected long-term growth rate of 12.2%. In the past six months, shares of the company have improved 40.5%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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