Aptiv (APTV) Surpasses Q3 Earnings and Revenue Estimates

Zacks Equity Research
·3-min read

Aptiv PLC APTV reported better-than-expected third-quarter 2020 results.

Adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 43% but declined 11% year over year. Revenues of $3.7 billion surpassed the consensus estimate by 9.5% and increased 3.1% year over year despite global vehicle production decline of 4%.

Notably, Aptiv’s shares declined 1.5% year to date, compared with 6.3% decline of the industry it belongs to.

Other Quarterly Numbers

Signal and Power Solutions revenues of $2.66 billion were up 3% year over year. Advanced Safety and User Experience revenues increased 4% year over year to $1.02 billion.

Adjusted operating income came in at $389 million, down from $410 million in the year-ago quarter. Adjusted operating income margin was 10.6%, down from 11.5%  in the year-ago quarter.

Aptiv exited the quarter with cash and cash equivalents balance of $2.1 billion compared with the prior quarter’s $1.9 million. Long-term debt was $3.9 billion, flat with the previous-quarter figure.

Total available liquidity at the end of the second quarter was $4.5 billion compared with the $4.1 billion recorded at the end of the prior quarter. Net cash generated from operating activities was $559 million.

2020 Outlook

Aptiv expects revenues in the range of $12.54 billion to $12.69 billion, higher than the Zacks Consensus Estimate of $12.1 billion.  Adjusted EPS is expected between $1.65 and $1.8, higher than the Zacks Consensus Estimate of $1.31.

Adjusted operating income is anticipated between $775 million and $825 million. Effective tax rate is expected to be in the range of 10% to 11%.

Currently, Aptiv carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax Inc. EFX reported third-quarter 2020 adjusted earnings of $1.87 per share that beat the Zacks Consensus Estimate by 16.2% and improved 26.4% on a year-over-year basis. Revenues of $1.07 billion outpaced the consensus estimate by 5.9% and improved 22% year over year.

ManpowerGroup Inc. MAN reported third-quarter 2020 earnings of $1.12 per share, beating the consensus mark by 90.5% but declining more than 37.5% year over year. Revenues of $4.58 billion surpassed the consensus mark by 8.7% but declined 12.7% year over year.

IHS Markit Ltd. INFO recorded third-quarter fiscal 2020 adjusted earnings per share of 77 cents that surpassed the consensus estimate by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter.

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