Aptiv Stock Soars On Solid Q2 Performance, Raised Full-Year Outlook

Aptiv PLC APTV shares are trading higher after reporting Street-beating performance in the second quarter of FY23.

The company reported Q2 net sales of $5.20 billion, up 28.2% Y/Y. Revenues beat estimates of $4.72 billion.

Adjusted EPS of $1.25 beat the Street view of $1.03.

Higher sales reflect growth of 33% in Asia (+41% in China), 28% in Europe, 19% in North America, and 20% in South America.

Q2 adjusted operating income was $530 million, compared to $213 million in the prior year. 

Adjusted operating income margin was 10.2%, expanding by 490 basis points. Margins soared on increased global vehicle production, pricing, and recent acquisitions.

APTV generated net cash flow from operating activities of $535 million, significantly higher than $95 million in the prior year period.

The company exited the quarter with $1.3 billion in cash and equivalents, with total available liquidity of $3.8 billion.

"We continued to achieve strong new business awards, totaling over $20 billion year-to-date, driven by our smart vehicle architecture solutions, software capabilities and advanced computing platforms for the next generation of electrified, software-defined vehicles," said Kevin Clark, chairman and chief executive officer. 

FY23 Outlook Raised

For FY23, the company sees net sales of $19.95 billion-$20.25 billion, versus the consensus of 17.79 billion (prior view: $18.70 billion-$19.30 billion).

Adjusted EPS is expected to be $4.60-$4.90 (prior view: $4.00-$4.50). The street view for Adjusted EPS stands at $3.99.

Price Action: APTV shares are trading higher by 6.05% to $112.71 premarket on the last check Thursday.