Autoliv (ALV) Q1 Earnings Lag Estimates, Revenues Surpass

Autoliv, Inc. (ALV) reported adjusted earnings of $1.66 per share in first-quarter 2018, missing the Zacks Consensus Estimate of $1.81. However, the bottom line improved from the prior-year quarter’s $1.65.

During the quarter under review, Autoliv reported net sales of $2.81 billion, reflecting an increase of 7.8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $2.79 billion.

Operating income gained 3.6% to $225.4 million. Adjusted operating margin was 8.8% in the reported quarter, higher than the prior-year quarter’s figure of 8.4%.

Autoliv, Inc. Price, Consensus and EPS Surprise

 

Autoliv, Inc. Price, Consensus and EPS Surprise | Autoliv, Inc. Quote

Segment Results

Sales at the Passive Safety segment increased 9.7% year over year to $2.24 billion in the reported quarter. Excluding positive currency translation effects, organic sales increased 1.4%. The segment’s operating income increased 10% year over year to $225.3 million.

Sales in the Electronics segment increased 1.8% year over year to $594 million. Excluding positive currency-translation effects, organic sales declined 4.1%. This decline was due to the phase-out effect of certain models with Restraint Control Systems and Brake Systems, which more than offset growth in Active Safety. The segment’s operating income increased 122% year over year to $30.2 million.

Financial Position

Autoliv had cash and cash equivalents of $793.9 million as of Mar 31, 2018, lower than $1.23 billion reported as of Mar 31, 2017. Long-term debt was $1.33 billion as of Mar 31, 2018, almost unchanged from the figure recorded as of Mar 31, 2017.

In first-quarter 2018, the company’s cash flow from operations was $16 million compared with the year-ago figure of $149 million. Net capital expenditures increased to $139 million from the year-ago figure of $121 million.

Guidance

For full-year 2018, Autoliv reaffirms expected organic sales growth for Passive Safety segment to be more than 10%, while compared with 2017 the segment’s profitability is anticipated to increase. For Electronics segment, organic sales growth is to be around negative 3% while profitability is projected to decrease compared with full-year 2017.

Zacks Rank & Other Stocks to Consider

Autoliv carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the auto space are Bridgestone Corporation BRDCY, BorgWarner Inc. BWA and Dana Incorporated DAN. While Bridgestone and BorgWarner carry Zacks Rank of 2, Dana sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bridgestone has expected long-term growth rate of 4.5%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 3.6% upward over the last 30 days.

BorgWarner has expected long-term growth rate of 8.6%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 0.5% upward over the last seven days.

Dana has expected long-term growth rate of 10%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 2.4% upward over the last 30 days.

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