Aptiv Cuts FY22 Forecast On Q2 Earnings Miss

Aptiv PLC APTV reported second-quarter FY22 sales growth of 7% year-on-year to $4.06 billion, missing the consensus of $4.09 billion.
Revenue rose 9% adjusted for currency exchange and commodity movements.
Revenue in North America rose 21%, South America fell 30%, Europe grew 4%, and Asia increased 2%, which includes a decline of 2% in China.
Operating expenses rose 12.4% Y/Y to $3.9 billion. The adjusted operating margin was 5.3%, with an Adjusted operating income of $213 million and an Adjusted EBITDA of $365 million.
Cash used in operating activities amounted to $(107) million in the six months. The company held $4.7 billion in cash and equivalents as of June 30, 2022.
Adjusted EPS of $0.22 missed the analyst consensus of $0.58.
"While our long-term business outlook has never been better, we are mindful of persistent inflation and macro headwinds, particularly in Europe," said Kevin Clark, chairman, and CEO.
Outlook: Aptiv expects FY22 adjusted EPS of $3.05 - $3.55 (prior view $3.90 - $4.80), versus the consensus of $3.85.
APTV expects FY22 net sales of $17 billion - $17.3 billion (prior view $17.75 billion - $18.15 billion), versus the consensus of $17.75 billion.
It expects FY22 adjusted EBITDA of $2.16 billion - $2.31 billion (prior view $2.415 billion - $2.695 billion).
Price Action: APTV shares traded lower by 6.00% at $103.16 in premarket on the last check Thursday.

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